What is the purpose of "guaranteed issue" in health insurance?

What is the purpose of "guaranteed issue" in health insurance?

• A. To limit coverage options based on health status
• B. To allow coverage acquisition without medical underwriting
• C. To increase premiums for all applicants
• D. To ensure all applicants have the same coverage limits

Answer: (B)

The purpose of "guaranteed issue" in health insurance is to allow coverage acquisition without medical underwriting. This means that insurers must provide coverage to applicants regardless of their health status or pre-existing conditions. This principle is designed to enhance access to insurance and protect individuals who may otherwise be denied coverage based on their medical history. By eliminating the need for medical underwriting, guaranteed issue provisions ensure that individuals can obtain health insurance, thus promoting a more inclusive health insurance market. This not only aids those with chronic illnesses or higher health risks but also contributes to the overall stability of the insurance pool by encouraging a diverse mix of participants.

The purpose of "guaranteed issue" in health insurance is to allow coverage acquisition without medical underwriting. This means that insurers must provide coverage to applicants regardless of their health status or pre-existing conditions. This principle is designed to enhance access to insurance and protect individuals who may otherwise be denied coverage based on their medical history. By eliminating the need for medical underwriting, guaranteed issue provisions ensure that individuals can obtain health insurance, thus promoting a more inclusive health insurance market. This not only aids those with chronic illnesses or higher health risks but also contributes to the overall stability of the insurance pool by encouraging a diverse mix of participants.