Short-Term Insurance Plans That Accept Pre-Existing Conditions

Those who have been laid off or unemployed for a period of time most likely lose their health insurance coverage shortly thereafter. Short-term insurance is designed to fill the gaps during transition-type periods when regular coverage is unavailable. As a result, many short-term plans don't cover pre-existing conditions. Plans that do accept pre-existing conditions are available through state and federal programs.

Guaranteed Issue Plans

• Within the United States, state governments design the regulations for the insurance industry so health plans can vary on a state-by-state basis. As the name implies, guaranteed issue insurance guarantees health insurance coverage regardless of whether a person has pre-existing conditions. When used on a short-term basis, insurance companies can reserve the right to enforce a waiting period before covering any treatments or services related to a pre-existing condition. Under the Health Insurance Portability and Accountability Act (HIPAA) of 1996, individuals who were covered under a former insurance plan and had a pre-existing condition are entitled to future insurance coverage. And while guaranteed issue plans typically run higher than standard coverage, available plan types provide much of the same coverages provided by standard health insurance plans.

State Risk Pools

• State risk insurance pools are commonly used as the insurer of last resort. Using state government funding, risk pool programs provide health insurance to those unable to obtain coverage from private insurance companies. To qualify, certain pieces of documentation---such as involuntary termination notices, medical documentation verifying a pre-existing condition and denial letters from private insurance companies---must be submitted when applying to the program. Risk pool eligibility guidelines vary from state-to-state, meaning coverages, premium rates and waiting periods may vary as well. Not unlike guaranteed issue plans, premium rates for state plans typically run due to the increased risk insurers take on by covering those with known pre-existing conditions.

Patient Protection and Affordable Care Act

• As of July 2010, the federal government enacted the Patient Protection and Affordable Care Act as a means to further supplement state risk pool health insurance programs. Through this measure, Congress allotted $5 billion towards enhancing state-run risk pools or creating new risk pools in states that have none. State governments can also opt to have the federal government administer a risk pool program within state jurisdictions. The Patient Protection and Affordable Care Act is part of the Health Reform Act of 2010, which requires private insurers to cover individuals with pre-existing conditions by January 2014. The new Patient Protection Act provides an interim solution for individuals in need of short-term insurance until the 2014 Act goes into effect.