Well yeah, that could be the case, but what if you had a life long illness like Type 1 diabetes, lose your insurance, then try to get new insurance and can’t get anything?
Let’s not kid ourselves though. Insurance companies could universally drop everyone’s rate $100/mo and still be making money hand over fist.
Accepting pre-existing conditions is one of the things that have driven the cost of insurance up and I would disagree with you that it was a good thing to allow it. I do however believe that they could have and should have allowed exceptions for certain life long health issues to be insured and in the case like you mentioned above.
