Waiting Periods - What to Expect
Enrolling in a health insurance plan is not as simple as it seems.
In many cases, you will have to wait for a period of time, often months, before you can actually receive coverage.
Your insurance policy should state the amount of time you must wait for coverage.
These holding periods come in several different forms, each with different rules.
In general, the main types are pre-existing condition exclusion, employer, and affiliation periods.
Understanding each type and what it means for your coverage is important if you want to know when you can receive benefits.
The first type of waiting period is a pre-existing condition exclusion period.
If you have a condition such as cancer, asthma, heart attack, or other serious illness in the six months prior to enrolling for health insurance, you might find yourself in one of these waiting periods.
Insurance carriers do not want to offer health insurance to individuals who are likely to file expensive claims.
A pre-existing condition exclusion period is a way for these companies to prevent you from filing an expensive claim before paying any premiums.
This type of waiting period can last as little as a month or as long as 18 months, depending on your carrier.
You can avoid this exclusion period if you were previously enrolled in a group health plan for at least a year before switching carriers.
The second type is an employer holding period.
Most companies that offer health insurance make new employees wait for a certain amount of time before enrolling in health insurance.
Employer waiting periods can be very short or extremely long depending on the company.
This type of waiting period exists to prevent new employees from filing claims and then quitting as soon as they enroll.
Although the wait can be tough, employer-sponsored group health plans are usually worth it.
If you enroll in an HMO plan, you might have to wait through an affiliation period.
Affiliation waiting periods cannot last any longer than 3 months.
During this time, you will not receive any coverage, but you will not have to pay benefits, either.
This type of waiting period is subject to strict rules.
An HMO cannot impose both an affiliation period and a pre-existing condition exclusion period, for example.
An affiliation waiting period is probably the least frustrating type.
Remember, staying enrolled in a group health plan before switching will allow you to avoid the frustration associated with a waiting period.
If you need assistance in locating particular coverages at a pre-determined price, we can help you save up to 50% on your health insurance.
In many cases, you will have to wait for a period of time, often months, before you can actually receive coverage.
Your insurance policy should state the amount of time you must wait for coverage.
These holding periods come in several different forms, each with different rules.
In general, the main types are pre-existing condition exclusion, employer, and affiliation periods.
Understanding each type and what it means for your coverage is important if you want to know when you can receive benefits.
The first type of waiting period is a pre-existing condition exclusion period.
If you have a condition such as cancer, asthma, heart attack, or other serious illness in the six months prior to enrolling for health insurance, you might find yourself in one of these waiting periods.
Insurance carriers do not want to offer health insurance to individuals who are likely to file expensive claims.
A pre-existing condition exclusion period is a way for these companies to prevent you from filing an expensive claim before paying any premiums.
This type of waiting period can last as little as a month or as long as 18 months, depending on your carrier.
You can avoid this exclusion period if you were previously enrolled in a group health plan for at least a year before switching carriers.
The second type is an employer holding period.
Most companies that offer health insurance make new employees wait for a certain amount of time before enrolling in health insurance.
Employer waiting periods can be very short or extremely long depending on the company.
This type of waiting period exists to prevent new employees from filing claims and then quitting as soon as they enroll.
Although the wait can be tough, employer-sponsored group health plans are usually worth it.
If you enroll in an HMO plan, you might have to wait through an affiliation period.
Affiliation waiting periods cannot last any longer than 3 months.
During this time, you will not receive any coverage, but you will not have to pay benefits, either.
This type of waiting period is subject to strict rules.
An HMO cannot impose both an affiliation period and a pre-existing condition exclusion period, for example.
An affiliation waiting period is probably the least frustrating type.
Remember, staying enrolled in a group health plan before switching will allow you to avoid the frustration associated with a waiting period.
If you need assistance in locating particular coverages at a pre-determined price, we can help you save up to 50% on your health insurance.
Source...