What does 'guaranteed issue' mean in health insurance markets?

What does 'guaranteed issue' mean in health insurance markets?

• A. Insurers must offer plans to any applicant regardless of health status; prohibits underwriting based on health.
• B. Plans cannot charge any premium.
• C. Plans can deny coverage to high-risk individuals.
• D. Plans must cover only employer-sponsored individuals.

Answer: (A)

Guaranteed issue means that health insurers must offer coverage to any applicant regardless of health status, and they cannot deny a policy or impose higher premiums because of a person’s health or preexisting conditions. In practice, this expands access to insurance by removing health-based barriers; plans may still have price differences based on allowed factors (like age or location), but you cannot be turned away or charged more just because you are sick. This contrasts with approaches that allow underwriting or denying coverage for high-risk individuals, or that limit coverage to a specific group (such as only employers).

Guaranteed issue means that health insurers must offer coverage to any applicant regardless of health status, and they cannot deny a policy or impose higher premiums because of a person’s health or preexisting conditions. In practice, this expands access to insurance by removing health-based barriers; plans may still have price differences based on allowed factors (like age or location), but you cannot be turned away or charged more just because you are sick. This contrasts with approaches that allow underwriting or denying coverage for high-risk individuals, or that limit coverage to a specific group (such as only employers).