Yes they will IF you don't let your coverage lapse.
How many people don't know about their preexisting conditions? If their preexisting conditions are serious, why are they letting their coverage lapse?
http://en.wikipedia.org/wiki/Health_Insurance_Portability_an...
If you look up the cost of individual medical coverage and the amount of money provided by unemployment insurance, you may find yourself with the answer to that question.
I've not only looked up the cost, I've paid it while being unemployed (and "old"). What's your relevant experience?
Yes, it cost money, but so does housing and other essentials. My "not healthcare" expenses are very low and yet healthcare wasn't what would push me over the edge. I didn't even bother to shop.
I know that you believe that, which is why I posted a link to a description of some relevant (US) federal legislation. (I know that there is other relevant legislation but ....)
As I mentioned, I've paid for individual coverage out of pocket while unemployed (and old). My experience does not match the common stories and I'm pretty sure that I'm not a special snowflake.
I'm glad you were able to obtain coverage on the private market, but when I started my company in 2005, I tried to pay for it for my family and various members of my family were declined from every insurer in Illinois. I have had continuous health care coverage since 1994.
You made allusions to our "willingness to pay for the true cost of our coverage"† (my paraphrase) in our previous conversation, which I assure you has nothing to do with my complaint. We weren't charged extra (though an extra charge would have been unfair, I'd have paid it and gotten on with my life). We were refused any coverage.
The solution to this problem was to set up a group plan at Matasano, which we were able to do because (a) we're large relative to most YC companies and (b) we have a full-time finance/contracts person. That solution does nothing for whoever takes the job this thread is discussing.
† You also asked where the perceived belligerence in my last reply to you came from; implying that I'm complaining that I couldn't get a free lunch is where it came from. The implication is particularly irritating because my complaint isn't that the "food" (to torture the metaphor) was too expensive; it's that the sellers decided to starve us.