Guaranteed Issue Plans, Coverage & Quotes
If you suffer from a pre-existing condition, buying a health insurance plan may be a struggle. Many insurance companies will refuse to sell policies to people with a variety of conditions. For example, most standard health insurance plans will not cover someone who has or has had any form of cancer. Neither will they be willing to underwrite policies for those with diabetes, high blood pressure, or other common chronic conditions. This is regardless of how well-controlled the condition may be. In addition, women who are currently pregnant will find it difficult to buy a policy on the open market.
Why is this the case? It all comes down to a single factor: cost. Health insurance companies are private entities, and many major providers are for-profit. They generate revenues through receiving premiums from as many people as possible, while paying out the least amount possible in claims. Therefore, health insurers are often leery of taking on the increased risk of someone who already has a health problem. When a standard health insurance plan is willing to take on a person with pre-existing conditions, the policy written for them often excludes those very conditions!
Many affordable health insurance options will reject a potential customer with pre-existing conditions entirely. Individual policies have more stringent underwriting standards than group health insurance policies, because there are fewer opportunities for cost-sharing. That is why employer-sponsored health insurance accepts the vast majority of employees, some of whom would struggle in buying individual health insurance. Unfortunately, other insurers often look upon rejections negatively; if one group of underwriters judged him or her too high a risk, the rest tend to follow suit. However, guaranteed issue plans allow you to get out of that vicious cycle.
A guaranteed issue plan is a type of health insurance plan that is required to provide coverage for all those who apply, regardless of health status or risk. If you are unable to buy individual coverage, a guaranteed issue health insurance plan may be for you. These plans are available nationwide. A handful of states have enacted legislation which mandates that all individual health insurance sold is guaranteed-issue. In general, guaranteed issue plans are comprehensive health insurance. Such plans include doctor and hospital visits, as well as prescription medications.
Guaranteed issue health insurance tends more expensive than similar non-guaranteed issue plans. In most cases, this is preferable and cheaper than lacking health insurance altogether. Many guaranteed issue health insurance policies also have waiting periods for your pre-existing condition(s) to be covered, although the time frame varies.
Guaranteed issue health insurance should be a last resort. Instead, one should ideally buy health coverage at a lower rate while they are still healthy. However, we understand that sometimes life gets in the way. These guaranteed issue health plans can help during times of need, such as if you are unemployed and had to drop your health insurance policy (either because your COBRA benefits expired, or because you could no longer afford to continue your group coverage through COBRA).
Ask VitalOne about your guaranteed issue individual health insurance options. Our plans work with the largest PPO network in the nation, Multiplan. Our have licensed insurance agents are available to answer your questions and help you decide whether a guaranteed issue plan is right for you.