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 also called the look back period.
· 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 health plans can only exclude coverage for pre-existing conditions for a limited time. The maximum exclusion period depends on the type of group health plan you are joining. If you are joining a fully-insured group health plan in Colorado, the maximum exclusion period is 6 months. If you are joining a self-insured group health plan, the maximum exclusion period is 12 months.
If you enroll late in a self-insured group plan (after you were hired and not during a regular or special enrollment period), you may have a pre-existing condition exclusion period of 18 months. Or, if you are a late enrollee in a fully insured group health plan, the health plan might exclude you altogether for up to one year.
Ask your prospective employer if you are not sure what limit applies to you.
· Group health 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:
Children’s Health Insurance Program Medicare
Federal Employees Health Benefits(FEHBP) Military health coverage Foreign National Coverage (CHAMPUS, TRICARE)
Group health plan (including COBRA) State high-risk pools
Indian Health Service Student health insurance
Individual health insurance VA coverage
Medicaid
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.
· Coverage counts as continuous if it is not interrupted by a significant break. Fully insured group health plans in Colorado count coverage as continuous if it is not interrupted by a break of 90 or more days in a row. Self-insured group health plans consider coverage continuous if it is not interrupted by a break of 63 or more days in a row.
What is continuous coverage?
You can get continuous coverage under one plan or under several plans as long as you don’t have a significant lapse.
Take Art, who has diabetes. Ajax Company covered him under its group health plan for 3 months, but he lost his job and health coverage. Then, 75 days later, Art found a new job at Beta Corporation and had health coverage for 3 more months. Art changed jobs again to work for Charter Company, and immediately joined the health plan. Charter has a fully insured group health plan that covers care for diabetes but excludes pre-existing conditions for 6 months. Charter must cover Art’s diabetes care immediately. This is because Art’s prior coverage under the Ajax and Beta plans was not interrupted by a break (of 90 days). He must be given credit for 6 months of prior, continuous coverage toward the Charter plan’s 6-month exclusion.
Now consider a slightly different situation. Assume Charter has a self-insured group health plan. In this case, Charter will give Art credit only for his Beta’s plan coverage. Art does not get credit for his coverage at Ajax since he had a break of more than 63 consecutive days. Charter’s plan will begin paying for Art’s diabetes care in 3 months (6 months minus 3 months).
· In determining continuous coverage, employer-imposed waiting periods and HMO affiliation 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 toward it. If your employer requires a waiting period, the pre-existing condition exclusion period begins on the first day of the waiting period. HMOs that require an affiliation period cannot exclude coverage for pre-existing conditions.
· Your protections may differ if you move to a self-insured group health plan that offers more benefits than your old one did. Plans can look back to determine whether your previous 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. Under Colorado insurance law, fully insured group plans are not permitted to use this alternative method of crediting prior coverage.
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 self-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.
