I'm confused by the recent discussions emanating from the Obama administration. If something like the current proposals pass, and those proposals "work," low-risk individuals end up subsidizing the health care of high-risk individuals. Prices for insurance won't need to go up at outrageous rates, or so we are told.
If current proposals fail to pass, insurance companies can still just dump people. Forcing them to lower their prices will induce them to dump even more people and to have a tighter definition of preexisting conditions.
It seems to me this announcement is either just headline-seeking or an admission that, after the plan is passed, premia will continue to rise at high rates. The latter case runs contrary to the narrative of how the plan will contain "the health insurance death spiral of the status quo."
Perhaps forthcoming details will clarify this matter. (Is it for the transition period?)