You've probably heard the term alot.  In a recent presidential debate, I heard John Edwards say he wanted to make it so health insurance companies could not deny services for pre-existing conditions.  Here's how it works:

Pre-existing condition:  Any condition you received treatment or advice for prior to starting a new health insurance policy.

Pre-existing waiting period:  Typically only for your first year of coverage, the health insurance company will not pay for services that were for a pre-existing condition.  After that first year, they will start covering services for your pre-existing conditions.

Keep in mind this does not mean the health insurance won't cover anything during your pre-existing waiting period... it just means they won't cover things considered to be pre-existing conditions.  This is to protect insurance companies against what is called adverse selection.

Adverse Selection:  The tendency for a higher percentage of persons with current illnesses to purchase health insurance.

Insurance is simply a financial contract designed to protect against future, unexpected costs.  Health insurance is no different.  However, with health insurance many seek to purchase it to cover current costs rather than future, unexpected costs.  This is why pre-existing waiting period exist today.

How the government helps you:  There is a federal law called HIPAA (Health Insurance Portability and Accountability Act).  This law entitles you to receive a policy without a pre-existing stipulation if you are changing policies and did not go without coverage for over 63 days.

So, make sure you are always covered, don't go over 63 days without coverage, and you won't have to worry about pre-existing at all!

www.MyHealthInsuranceGuy.com