Final answer:
Insurance coverage is generally provided based on the information submitted by the applicant, and intentional misrepresentation such as age can lead to adjusted coverage or other penalties. In the context of the ACA, importantly, insurers can't reject people with preexisting conditions, but they do base premiums and coverage details on age and other disclosed personal information.
Step-by-step explanation:
When an individual misrepresents their age on a health insurance application, and the company still covers an illness, the coverage provided will be based on the information available to the insurer. If the insurer discovers the misstatement, they may adjust the coverage, premiums, or take other actions according to the terms of the policy and applicable laws. Health insurance plans often have clear rules about eligibility and accurate disclosure of personal information, including age.
In the context of the Affordable Care Act (ACA), which seeks to provide health insurance for around 32 million uninsured Americans through expanded Medicaid eligibility and state-based insurance exchanges, insurers are prohibited from rejecting applicants for preexisting conditions. This also includes removing annual and lifetime limits on payments, as well as allowing children up to age 26 to remain on their parents' policy. Nonetheless, coverage details, such as premiums and benefits, are typically determined based on the information submitted during the application process, which should be truthful and accurate.
Therefore, it is crucial that the information provided is correct to avoid any issues with coverage or potential accusations of insurance fraud.