Health Insurance Articles
A Look At States With Unusual Health Insurance Laws
2011-05-01
Health insurance laws heavily regulate the industry in all 50 states. When considering new coverage or trying to find a different health insurance provider, one should carefully consider state health insurance laws. All states have a different definition of pre-existing conditions. It is a good idea to understand how that can impact the coverage.
Alabama's health insurance laws do not restrict how much the insurance companies can charge the policyholder. It is imperative that residents understand the policy and its costs before purchase. State health insurance laws allow the companies to refuse coverage for pre-existing conditions. However, once an individual has coverage it is illegal for health insurance companies to cancel the policy because of illness.
Kentucky's health insurance laws allow for exclusions in coverage for conditions diagnosed six months before the policy goes into effect. The cost of any treatment received will not be covered by the policy. The exclusion can last as long as 12 months. The policy can carry elimination riders that can exclude the pre-existing condition permanently.
Vermont's health insurance laws are stricter than most. The state health insurance laws are designed to protect the residents from elimination riders that can permanently exclude coverage for pre-existing conditions. A pre-existing condition is defined as any condition or illness that an individual was diagnosed with or received treatment for in the 12 months before coverage began.
Oklahoma has some of the most lax health insurance laws of any of the states. There is practically no protection for the residents. Insurance companies are allowed to permanently exclude any pre-existing condition without any time limits. Pre-existing conditions are defined as any illness or injury an individual was diagnosed with or received treatment for at any time before the start of the policy. However, state health insurance laws provide that insurance companies cannot refuse to renew an individual's policy as long as the premiums have been paid.
New Hampshire is also considered to have very lax health insurance laws. A pre-existing condition is defined as any condition diagnosed or treated in the three months before the beginning of the policy. However, once the exclusion period is over, the health insurance company must cover the pre-existing condition. State health insurance laws provide that no one can be turned down for coverage because of age or health status. Insurance providers cannot refuse to offer continued coverage due to health or illness as long as the premiums are paid on time.
Many states such as New York, California and Florida have very strict health insurance laws. Other states have a more lax approach to state health insurance laws. Factors may include the state's financial ability to enforce stricter laws.
