When you first enroll in a group health plan, the employer or insurance company may ask if you have any pre-existing conditions.  Or, if you make a claim during the first year of coverage, the plan may look back to see whether it was for such a condition.  If so, it may try to exclude coverage for services related to that condition for a certain length of time.  However, federal and state laws protect you by placing limits on these pre-existing condition exclusion periods under group health plans.  In some cases, your protections will vary depending on the type of group health plan you belong to.

• A group health plan can count as pre-existing conditions only those for which you actually received (or were recommended to receive) a diagnosis, treatment or medical advice within the 6 months immediately before you joined that plan. This period is called the look back period.
• Under group health plans, coverage for pre-existing conditions can be excluded for no longer than 12 months when you join a plan as a regular or special enrollee. However, if you enroll late in a self-insured group health plan (after you are hired and not during a regular or special enrollment period), you may have an 18-month pre-existing condition exclusion period. Late enrollees in fully insured health plans may face one of three possibilities: (1) immediate enrollment in the plan with an 18-month exclusion period; (2) denial of plan coverage for 18 months, after which the plan must admit you without any pre-existing condition exclusion period; or (3) some combination of denial of coverage and a pre-existing condition exclusion period, which together does not exceed 18 months. A fully insured group health plan must treat all its late enrollees the same, whatever method it chooses to use.
• Group health plans cannot apply a pre-existing condition exclusion period for pregnancy, newborns, newly adopted children, children placed for adoption, or genetic information.
• Group plans that impose pre-existing condition exclusion periods must give you credit for any previous continuous creditable coverage that you’ve had. Most types of private and government-sponsored health insurance are considered creditable coverage.

What is creditable coverage?

Most health insurance counts as creditable coverage, including:
Federal Employees Health Benefits (FEHBP)                
Group health insurance (including COBRA)                   
Indian Health Service                                                      
Individual health insurance                                              
Medicaid
Medicare                                 
Military health coverage   (CHAMPUS,TRICARE)
State health insurance high risk pools

In most cases, you should get a certificate of creditable coverage when you leave a health plan.  You also can request certificates at other times.  If you cannot get one, you can submit other proof of prior coverage, such as old health plan ID cards or statements from your doctor showing bills paid by your health insurance plan.

• The definition of continuous coverage varies depending on the type of group health plan you are joining. For self-insured group health plans, coverage counts as continuous if it is not interrupted by a break of 63 or more days in a row. For fully insured group health plans, coverage counts as continuous if it is not interrupted by a break of 90 or more days in a row.

Fully insured and self-insured group health plans count continuous coverage differently.

Art, who is diabetic, worked for Ajax Company and was covered under its group health plan for 18 months.  He lost his job and was without coverage for 75 days. Fortunately, on the 76^th day after leaving Ajax, Art found a new job at Beta Corporation.  He immediately joined Beta’s fully insured group health plan, which covers diabetes but excludes pre-existing conditions for a year.  In Alaska, fully insured group health plans count as continuous all creditable coverage that is not interrupted by a lapse of 90 or more consecutive days.  Because his lapse in coverage was less than 90 days, Art will get credit for his coverage at Ajax. Beta’s plan will begin paying for Art’s diabetes care right away.

Now consider a slightly different situation.  Assume Beta Corporation’s group health plan is self-insured.  Self-insured plans must count as continuous all creditable coverage that is not interrupted by a break of 63 or more consecutive days.  In this case, Art will not get credit for his prior coverage at Ajax because it was followed by a break greater than 63 days. Beta’s plan will begin paying for Art’s diabetes care in one year.

• In determining pre-existing exclusion periods employer-imposed waiting periods do not count as a break in coverage. If your new plan imposes a pre-existing condition exclusion period, you can credit time under your prior continuous coverage towards it. If your employer requires a waiting period, the pre-existing condition exclusion period begins on the first day of the waiting period
• Your protections may differ if you move to a group health plan that offers more benefits than your old health plan did. Plans can look back to determine whether your previous health plan covered prescription drugs, mental health, substance abuse, dental care, or vision care. If you did not have continuous coverage for one or more of these categories of benefits, your new group health plan may impose a pre-existing condition exclusion period for that category. Plans that use this method of crediting prior coverage must use it for everyone and must disclose this to you when you enroll.

Even if coverage is continuous, there may be an exclusion for certain benefits

Sue needs prescription medication to control her blood pressure.  She had 2 years of continuous coverage under her employer’s group health plan, which did not cover prescription drugs.  Sue changes jobs, and her new employer’s fully insured plan does cover prescription drugs.  However, because her prior policy did not, the new plan refuses to cover her blood pressure medicine for 6 months.

Question: Is this permitted?

Answer: Yes.  However, the plan must pay for covered doctor visits, hospital care, and other services for Sue’s high blood pressure.  It also must pay for covered prescription drugs she needs for other conditions that were not pre-existing.

• No pre-existing condition exclusion period can be applied without appropriate notice. Your group health plan must inform you, in writing, if it intends to impose such a period. Also, if needed, it must help you get a certificate of creditable coverage from your old health plan.