Hassle-Free Health Coverage: Applying For Insurance
To get an accurate quote for health insurance, you will have to fill out an application -- completely and correctly. If you lie on the application, the company can not only deny you coverage for a problem down the road, it can rescind the policy entirely. And, most companies can get your medical information anyway through a non-profit association called the Medical Information Bureau (MIB).
The MIB was formed in 1902 by a group of doctors who were also medical directors at several large insurance companies. Because their insurance companies had lost significant dollars to dishonest applicants, they sought a means to centralize health-related information on individual applicants and reduce the potential for fraud.
Before you apply for insurance, it might be a good idea to check if there's a report on file for you, it's at no charge. And, if there is one and it's wrong, you can correct it. Telephone MIB at 1.617.426.3660 and ask for your free report.
The application will ask for your age and health history. In addition, insurance companies often ask your doctor for your medical records, and they may
require you to undergo a physical with one of their doctors, or even get additional blood tests. (However, they cannot ask you for an HIV test, unless you are also applying for disability income insurance -- and then it has to be with informed consent.)
In completing the application, you will have to let the insurance company know about pre-existing conditions -- even if you're getting coverage through a new plan at work. The company will want to know what illnesses and health problems you have had during the last few years (possibly longer).
Your age is an important factor in pricing and obtaining insurance. Many insurance companies have age bands, when it comes to costs for coverage. For instance, everyone 21 to 25 may fall into one price range. Everyone 26 to 30 would cost a bit more to insure each month. And so on.
Insurance companies prefer to write policies for young, healthy people -- and they prefer to stay away from older, less healthy ones. So, it pays to pick a good plan when you're relatively young and stay with it, if you can.
Some companies also allow you to change your mind after you purchase health insurance -- but only if the policy has a free look or review period, which typically ranges from 10 to 30 days. So, you'll want to read your policy as soon as you get it.
You may even want to ask your pharmacist and your doctor how different plans are handled before you sign on the dotted line -- or sign your check. Your regular providers should be more than happy to tell you which companies and which plans are easy to work with, and which ones make life difficult for providers and patients.
