Kids and Health Care: Pre-Existing Conditions

As we've mentioned throughout the book, pre-existing conditions are an important issue in health insurance. Technically, pre-existing conditions are a type of exclusion -- a big type. They are usually the most common issue in insurance coverage disputes.

Most plans don't cover pre-existing conditions during the six months following the effective date of coverage, or any disease or physical condition named or specifically described as excluded in any endorsement attached to the policy.

Pay attention to any specific or custom exclusions on any policy. This is especially true if your kids have had any notable illness or disability within the last 10 years -- even if it's healed or in remission.

For example: When you applied for insurance, you disclosed that your 13-year-old daughter had been diagnosed with leukemia when she was eight. She went through radiation therapy, had a bone-marrow transplant and -- happily -- the disease has been in remission for almost five years. If the insurance company doesn't attach a specific exclusion, your daughter would be covered (after the waiting period ends) if the leukemia recurs. If the leukemia is excluded, she will never have coverage for that condition, regardless of how long the policy is in effect.