Can an insurance company deny you coverage due to pre existing condition?

Question

If you are currently employeed and insured for you and your dependants and wish to quit your job and start your own business and buy private insurance somewhere else, can an insurance deny your application or coverage due to a preexisting condition? I know they used to but Im not sure if that is true since the insurance portability law passed a few years ago. Does this law apply to quitting and seeking alternative insurance as long as you do not let your coverage lapse?

Answer 1

The law you are referring to is HIPAA (Health Insurance Portability and Accountability Act of 1996) and as Mia pointed out, it only applies to group insurance, not individuals.

If you were applying for another group coverage, all you would need would be a certificate of credible coverage from your former carrier.

If you are starting your own business, will have at least 1 additional employee, and are considering having medical and/or dental coverage, some carriers will go down to 2 lives.

Good luck!

Answer 2

While working you are covered by Group insurance. Ask insurer if you can continue this coverage after you leave the employer.

I don't believe insurance companies can be forced to take on new clients - particularly if there is high risk. If you press the issue, they may offer coverage, but at a prohibitive rate.

Check with Chamber of Commerce -they may have Group coverage for their membership. Then check if you'd be automatically covered once you become a member. (Check Professional groups...if you are an Engineer , Accountant etc.... for similar benefits.)

I can't speak to the existence of a portability law in your jurisdiction....The above is assuming there is not.

Good Luck!

PS: Working on your own allows you to reap greater rewards than as an employee....So make a lot of money so you can self-insure and forgo having to add to some insurance company's wealth. :o)

Answer 3

The Portability Law did not force insurance companies to insure people under private coverage. What it did was force employers to cover pre-existing conditions, if you had prior coverage and went less than 63 days without coverage, not counting their waiting period.

It allows you to go from one job to another, so if you're self-employed and have coverage, a new employer has to cover you if you had prior coverage, whether group or private. But what you are saying is just the opposite.

What you CAN do though, is get COBRA coverage from your former employer. It is another federal law that requires them to offer you continuation of coverage.

Send me a message if you have any questions, maybe we can discuss it further.


I♥♫→mia☼☺†

Answer 4

Yes, they can. They do NOT need to offer you coverage on a NEW policy for a preexisting condition.

INsurance portability means, if you're going from one preexisting group policy to another PREEXISTING group policy, with no lapse in coverage, the NEW group policy can't exclude the preexisting condition.

All bets are off, though, when it comes to a new policy.

Answer 5

Depending on the plan, some insurances have a "waiting period" for pre-exisiting conditions. Meaning, if you seek treatment for this condition (such as asthma) during this time, they don't have to pay for it. The waiting period can be anywhere from 90 days to a year. BUT, if your old plan ends the day before the new one begins, sometimes they waive the waiting period...

Answer 6

yes, they can do that. also if an insurance carrier does take you, they will charge you a heck of a lot more then if your young and healthy. i would stay with the job with the insurance.

Answer 7

I've done this... and the answer is YES. Call it a gift by our government to the insurance companies to allow them to do this to its citizens.

Answer 8

LISTEN HONEY
INSURANCE COMPANIES CAN DO WHATEVER THE HELL THEY
WANT......I'VE BEEN UNINSURED FOR 11 YEARS DUE TO A PRE-EXISTING CONDITION......THIS COUNTRY NEEDS A WAKE UP CALL.