Complete Disclosure of Medical History
In order to evaluate an individual for underwriting purposes, reading through their medical history used to be essential. All insurance companies, before health reform, asked for the diagnosis, the date of onset, the date treatment ended, and all treatments received for every condition listed. This was for the purpose of underwriting accurately and deciding on the risk level for the applicant. If their risk was too high, an applicant would be deemed uninsurable and denied coverage, if it was moderate, then their premiums would increase, and they may be subject to exclusion periods or elimination riders. Completion of diagnostic work-ups were necessary before underwriting.
The insurance company’s underwriting department would review the applicant’s entire medical history, which included pharmacy use. The determining factors for a client’s coverage level, ability to be insured, or product placement were the underwriting department of the insurance company.