Question

The provision in a Group Health policy that allows the insurer to postpone coverage for a covered illness 30 after the policy's effective date is referred to as the:

Answer 1

The provision that delays coverage for a health condition in a Group Health policy for 30 days after the effective date is called the waiting period. This method of selling health insurance decreases potential risk for insurers. Coinsurance is another aspect to consider.

Step-by-step explanation:

The provision in a Group Health policy that allows the insurer to postpone coverage for a covered illness 30 days after the policy's effective date is referred to as the waiting period. In the U.S. health insurance market, health insurance is often sold through groups based on place of employment or, under The Affordable Care Act, from a state government sponsored health exchange market. This mix of people with varying health risks reduces the insurance firm's fear of attracting only those who have high risks. Coinsurance also plays a part where an insurance policyholder pays a percentage of a loss, and the insurance company pays the remaining cost.

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