Health insurance for your business is a necessity. But what type of underwriting should you choose? Did you know that MHD works to cover pre-existing conditions? With this type of coverage, your past medical history is ignored and replaced to include the health challenges that will come up in the future.
Medical History Disregarded can be availed of if you have 20 or more employees in your business. Below we provide a comprehensive study of MHD, how to get it, what it includes, the cost, and pros and cons.
What does a medical history disregarded policy mean for a company?
A previous condition may be considered ‘medical history disallowed’ (MHD). The policy will not stop you from claiming for any conditions that happened before the start date of your private medical insurance, as opposed to other types of underwriting which do so. Underwriting is a process that assesses your risk and sets eligibility criteria. Waivers or waiting periods allow pre-existing conditions to become eligible in certain situations, such as Moratorium underwriting.
MHD has been utilized in large UK corporate schemes with many members where administration becomes increasingly difficult. This is because of its high premium, which allows for an additional layer of protection against potential claims to treat pre-existing conditions. To secure the necessary membership, MHD may require a smaller number. However, it’s not always possible in some cases, and careful consideration should be given before agreeing on this type of underwriting.
Does medical history disregarded underwriting cover chronic conditions?
You may find that your private health insurance policy has coverage for some types of injuries or illnesses but not others. For example, it won’t cover chronic conditions but will cover acute conditions, you can read more about how it works in our article. The same applies to Medical History Disregarded policies.
Acute conditions are short-term and sudden. They are:
- Heart attack
- Respiratory infections
- Common cold
- Asthma attack
Chronic conditions are often long-lasting, ongoing and difficult to overcome. They include:
- Chronic lung diseases
Medical History Disregarded means you won’t have to go through the hassle of checking your medical records. But this isn’t specific coverage on its own, and there will still be other types of policy-specific definitions.
What is the process for getting medical history disregarded in the health insurance market?
Medical History Disregarded is a health insurance option for small businesses with 20 employees or more as a group health insurance package. It’s rare to find this company policy available to smaller groups. Most major insurers offer it, including Bupa, Aviva and AXA.
Though this type of insurance is typically unavailable as an individual policy, it can be purchased as part of an international health care package. This plan provides many benefits, including maternity care coverage, specialist health cover, or pre-existing conditions. This kind of service caters primarily for wealthier individuals.
Will MHD underwriting be costlier for a business?
With MHD underwriting, the cost is higher because of high-risk cases like cancer or mental health. The insurer takes on this risk which means they’re willing to pay out more in claims than other insurers. There’s always a chance someone among the staff members could have a pre-existing condition like heart disease, cancer, mental health issues, etc.
Your staff’s medical conditions may increase their year on year renewal premiums if they are all eligible for coverage. If you had full underwriting or moratorium, this wouldn’t be an issue because pre-existing illnesses would not count towards your policies’ rates since there is no way to know which ones someone has before purchasing it based on these criteria.
What are the pros and cons of medical history disregarded for an employer?
Health Insurance with medical history disregarded underwriting effectively ignores your employees’ pre-existing conditions. It is, however, vital to consider both the advantages and disadvantages of MHD before proceeding:
Pros of MHD Policy
The advantages of opting for MHD include:
- Though pre-existing conditions will be covered, it is important to note that exceptions exist. For instance, you’ll not be covered for the ongoing management of conditions such as arthritis or asthma, which are usually lifelong chronic illnesses. These require regular medical attention to control symptoms and prevent progression towards more serious health problems.
- You will be able to attract the best of employees, and it’s a great benefit for your team.
- The employer can alleviate the burden of exposing previous medical history information by using an MHD policy.
- With MHD, you can breathe easy, there’s no need to fill out any medical questionnaires when creating a new group health insurance plan.
- The claims process is made much easier and straightforward by eliminating examining a patient’s medical history.
Cons of MHD Policy
On the other hand, there are some downsides which need to be considered. They include:
- The process of underwriting for MHD is more costly and risky than any other type.
- It might be more difficult to find a medical insurance company that offers you coverage in the future.
- You can’t just switch to a new insurer and expect the coverage to be identical. You need a medical underwriting process, which may result in new exclusions from your MHD cover policy as well.
Should i get medical history disregarded underwriting for my business?
MHD underwriting is the most expensive option to choose to cover all eligible pre-existing conditions. However, many employers prefer it over other options because they want their workers’ medical history disregarded when providing coverage. This is to maintain equality among employees and ensure that no one has an unfair advantage due to their particular health issue.
Maintaining this impartiality with MHR requirements also allows you not to have too much overhead cost spent on administration, resulting from employing more traditional methods of insurance premiums collection.
What is an alternative insurance policy?
Moratorium underwriting is an alternative to Medical History Disregarded (MHD). This type of insurance eliminates the need for you or your employees’ medical history before coverage begins but may be required if they make a claim. A moratorium would likely interest business owners because it allows them to get treatment for pre-existing conditions only after being free from that condition for certain periods.
For example, Sarah has had back problems before. The moratorium plan works like this: if she experiences further injuries during the first two years of underwriting, they won’t be covered. However, after this period, if the back issue re-emerges, Sarah would get medical cover.
There are many cover options available on the insurance market for people with medical conditions. For instance, most only provide coverage if they haven’t had any medical issues in the last five years. Always read through carefully before making your decision.
The bottom line
You may have a long history of ailments, but it doesn’t mean you can’t get insurance. Medical History Disregarded underwriting comes at a higher cost than standard packages; however, benefits are many, and the claims process is much quicker.
You can opt for CPME or continuing personal medical exclusions if you find a better deal elsewhere. For instance, cheaper premiums or more generous benefits and want to switch insurers – but need your current underwriting provided by private health insurance.