That's well put.
Let me add something. What Obamacare does is reset all relationships, which makes this worse. If someone has been paying for insurance for many years, has been healthy when he signed up, but eventually developed a condition, under the old scheme we'd expect that he should be able to continue with his insurer. It would be wrong for the insurer to take his money for years while he was healthy, and then dump him for his new health problems.
Now comes Obamacare, which disrupts all pre-existing relationships. So, everyone who is ill is now a newcomer with a pre-existing condition. The insurance companies have no legal way (even if they wanted one) to distinguish freeloaders showing up for the first time to be insured when they are sick from long-time customers who deserve a continuing relationship. How screwed up is that?
All this time, the insurance business has been arranged by risk pools and actuarial charts that drive them so that insurance companies can charge lower prices to lower risk clients. By shattering that model - doing away with the ability to subdivide the client base by risk - insurance companies will either go bankrupt, or exist only by government subsidy as front organizations for another social welfare program. Risk assessment and appropriate pricing was a valid business model. Obamacare never was.