Earlier quoted context omitted.
A million dollars is actually not enough to secure a dignified existence in the US. Nonsense: http://ryanwaggoner.com/2010/08/how-to-retire-at-30-on-1-mil... Not to face bankruptcy if a major health problem arises? Health insurance isn't that expensive unless you have a pre-existing condition [1]. I won't talk about the college and home ownership questions other than to say that families have figured out how to live…
"pre-existing condition" what does it mean? And how can old people avoid having pre-existing condition? Does that mean one has to be insured continuously to make sure no pre-existing condition arises in-between insurance gap? I'm new in the States and I hear this term is mentioned a lot.
If you're already afflicted with some illness (a 'preexisting condition') then the insurance company has a pretty good idea of what you'll cost them: more than someone like me, who's young and relatively healthy. So naturally, the rate for someone like this is significantly higher.
This becomes a problem when people think of 'insurance' as something that's a prerequisite for life rather than what it is, insurance. This is partially because as more and more people received insurance, the price kept rising and rising, because the individuals don't see them: they only see the deductible. By now, costs are getting to be so high that it's become a reality: you pretty much have to have insurance, because if you don't, and you get seriously ill, you're pretty fucked. Like, "will be owing money the rest of your life."
You hear "pre-existing condition" a lot because it became a political buzzword used to explain why Republicans want to kill your grandma.