Obtaining an individual health insurance policy goes beyond just picking out a plan. In fact, there is a whole application process involved where in which the insurance carriers will calculate the risk of insuring an individual or family. This is known as the underwriting process.

The underwriting process entails a simple health questionnaire about an applicant’s medical history. Insurance companies may inquire about the specific medications prescribed, treatment received for illnesses and injuries, and even may require a urine and blood test. It is important to be honest and forthcoming in your application, since insurance companies also work directly with the Medical Information Bureau (MIB). The MIB uses social security numbers to track applicants’ medical background records. Once an underwriter has reviewed an application they will make a decision whether or not to approve the individual or family. Furthermore, depending on your level of risk, an insurance carrier has the ability to make amendments to an application, and even decline coverage.

Typically “high risk” individuals will either have an exclusion rider applied to their coverage or incur a rate up. Exclusion riders allow “high risk” applicants to obtain coverage, but with limited benefits; namely, the insurance company has opted not to provide coverage for a preexisting condition for a period of time. Furthermore, an insurance company may increase or rate up a policy’s premium if they have determined a “high risk” factor. Most commonly a rate increase is applied to the coverage of individuals who smoke cigarettes or have a larger than normal Body Mass Index (BMI).

If uncertain about how a particular preexisting condition may influence your chances for approval, insurance companies offer a prescreening service through their websites. There, individuals can submit inquires, and typically receive a response within 48 hours.