What is the aim of a pre-existing condition waiting period?

The aim of a pre-existing condition waiting period is to prevent immediate coverage of prior medical conditions. This means that if an individual has a health condition that existed before the start of their insurance coverage, the insurance company will not provide benefits for that specific condition during the waiting period. This is a common practice among health insurance providers to manage risk and avoid situations where individuals purchase insurance only when they anticipate needing medical care for a pre-existing issue.

By implementing this waiting period, insurers can help maintain lower premiums for all policyholders. If insurers were to cover all pre-existing conditions immediately, it could lead to higher costs and potentially increase the premiums for everyone, as insurers would be taking on a greater financial risk. Thus, this practice helps balance the interests of both the insurer and the insured.