How does pre existing medical insurance work?
Health Insurance that covers pre existing conditions works typically by excluding that particular medical condition for a number of years until you are classed as being ‘free’ from it, or by excluding it completely. There are some exceptions to the rule based on the severity of your pre existing condition, which is why it is important to understand the options available.
With many private health insurance plans, you will be covered for a preexisting condition that you have been free from, after an initial period of two years – known as the moratorium. To many private medical insurance providers, being free from a disease, illness or injury means that you haven’t received any form of medical assistance for that particular condition over the last 5 years.
For example if you had a pre existing condition that has required no form of medical treatment or assistance for the previous 3 years, then you buy a health insurance plan with a 2 year moratorium, you would be covered for the treatment of that particular condition after the initial period of 2 years, as effectively you have been ‘free’ from it for a total period of 5 years.
What are the options for health insurance with preexisting conditions?
The options available for health insurance that accepts pre-existing conditions are based on the type of underwriting used, i.e. whether it has Moratorium Underwriting or Full Medical Underwriting.
Health Insurance with Moratorium Underwriting
As previously mention, this type of private health insurance will cover a medical condition as long as you have been free from it for a period usually of around 5 years.
You do not need to provide any medical history when you apply as the two year moratorium means that you are covered for any new conditions once this period is over. Any pre existing medical conditions would be included just as long as you have been free from them for 5 years.
As very limited information is required when you apply for your health insurance cover, the process is much easier and quicker, however medical information will be required from the doctor etc once you make a health insurance claim.
Health Insurance with Full Medical Underwriting
With this type of health cover the insurance provider uses your full medical history when you apply to work out whether to insure you; the risk, what the plan should include and exclude and the price.
Basically it all boils down to the risk, which in turn means they may actually provide private health cover for mild conditions but any pre existing medical condition may be excluded, regardless of when you last received any form of medical treatment or assistance for it.