10 Reasons You Could Be Denied For Health Insurance

Incorrect Information On The Application

Insurers are allowed to deny an application based on incorrect information. An insurer will usually do a background check as well as look into medical records to ensure that the applicant isn't falsifying information on their application. Insurers in most states are legally allowed to deny an applicant solely based on any incorrect information found on their forms. However, in California, insurers are only allowed to deny someone based on wrong information that could affect medical care. For example, if someone with hazel eyes puts their eye color down as green, the insurer cannot deny their application on this basis.

A Grandfathered Plan Can Deny Coverage Based On Pre-Existing Conditions

A plan purchased in America before March 2010 is grandfathered in under the Affordable Care Act. That is, someone can still be denied for a renewal of this plan if they have a pre-existing condition. Any new conditions will usually result in a rise in the premiums, not a denial. Americans have been denied renewals from grandfathered plans; if these people wanted to apply for a new plan, they could not be denied based on pre-existing conditions. However, their premiums will likely be much higher under their new insurance plan.