How does guaranteed issue differ from medical underwriting?

Guaranteed issue is a principle in health insurance that mandates insurers to provide coverage to all applicants, regardless of their health status or pre-existing conditions. This means that anyone who applies for insurance must be offered a policy, ensuring access to healthcare for individuals who might otherwise be denied coverage due to serious health issues. This approach is particularly important for protecting vulnerable populations and ensuring that everyone can obtain necessary medical care.

In contrast, medical underwriting involves assessing an individual’s health background to determine eligibility for coverage and the premiums charged. Insurers use medical underwriting to evaluate the risks associated with providing insurance to a particular person, which can lead to denying coverage or charging higher premiums based on health risk.

The distinction highlights the role of guaranteed issue as a protective measure in the insurance marketplace, ensuring inclusivity and access to healthcare for all, regardless of their health status. This commitment to universal access is a fundamental characteristic of guaranteed issue, setting it apart from the selective nature of medical underwriting.