Alabama Individual Health Insurance

Health insurance is an important protection to have for every person and every family. If you don't get group health insurance through your employer, then you should look into purchasing Alabama individual health insurance from a private insurer. If you are considering this route, you may have a lot of questions about the laws in Alabama regarding private policies. The information below will seek to help you learn more about private insurance policies, the Alabama laws surrounding them, and any rights that you may have.

Eligibility: How Are Applicants Evaluated?

First, there are no restrictions on medical underwriting in Alabama when it comes to the evaluation of applicants for individual policies. Most insurers will evaluate you based on your health status and possibly age, but they can use any factors they want to approve or deny your health insurance request. With an individual health plan, an applicant can be turned down for any reason. There are no restrictions or limitations and no one is guaranteed coverage. However, to comply with HIPPA Group-to-Individual Portability Coverage regulations, residents are offered guaranteed coverage into the Alabama Health Insurance Plan (AHIP), the state's high-risk health insurance, for individuals leaving a group health plan who haven't been able to obtain other private insurance.

Alabama Guaranteed Benefits & Pre-Existing Conditions

Although Alabama does not require insurers to carry standardized policies, they do have to cover certain benefits, namely after-birth hospital stays and mammograms. When it comes to pre-existing conditions, insurers are allowed a 60-month look-back period, where they can review your medical history for any indications of a pre-existing condition. They are also allowed a 24-month exclusionary period, where they can exclude any possible pre-existing conditions from your health care plan for up to 24 months. Additionally, they do not have to give you credit for prior coverage. Pregnancy can be considered a pre-existing condition and not covered for up to 24 months on your insurance policy, but genetics can not be used to claim a pre-existing condition for the fetus.

Premiums: How Much Will It Cost?

When it comes to premiums, the insurer does not have to abide by any laws when determining a policy rate. They may set your rate for any amount they choose, for any reasons. There are also no restrictions on individual health insurance rates or any limits on how much an insurer can charge for a health insurance policy, but competition with other insurers usually keeps them at a reasonable cost. Your insurer is also allowed to raise your insurance premiums. The good news is that your insurer cannot cancel your policy because of an illness and they can't deny you the chance to renew your policy. The one exception is short-term health insurance, which can deny you the chance to renew your policy.

If you are looking for private health insurance in Alabama, it is good to keep these points in mind, so that you know your rights when comparing policies and so that you don't run into any unexpected surprises. Above all else, remember that even restricted health insurance is better than no protection at all.