What does 'pre-existing condition' mean regarding health insurance?

The term 'pre-existing condition' in the context of health insurance refers to a health issue that was present before the effective date of the insurance policy. This definition is crucial because it reflects the insurance industry's approach to managing risk. When an individual applies for health insurance, the insurer assesses the applicant's medical history. If a condition existed before obtaining coverage, it may impact the terms of coverage, including exclusions, waiting periods, or increased premiums.

It's important to understand this term within the broader context of insurance practices. Insurers often utilize the concept of pre-existing conditions to determine eligibility for certain benefits or to establish what will be covered under a new policy. Therefore, the definition aligns with industry standards and regulatory frameworks that govern how health conditions are treated in insurance underwriting.