How To Get Health Insurance If You Have A Pre-existing Condition

If you have or have had a serious medical condition such as cancer, HIV or heart disease, then you know how critical it is to have health coverage to pay for your medical treatments. Unfortunately, having such a disease is precisely the factor that makes it most difficult to obtain health insurance. Options are available, but you may have to be a smart and persistent shopper in order to find a suitable plan at an affordable price.

Step 1

Get a job. The beauty of an employer-sponsored group plan is that you cannot be excluded based on current or past medical conditions. You also cannot be charged a higher rate for the same coverage as other participants. Such plans tend to be cost-effective, too, with the employer picking up 75 to 80 percent of the monthly premium, according to the financial magazine SmartMoney.

Step 2

Sign up for COBRA. Even if you lose your job, you can typically continue under your employer's group plan for 18 months through the Consolidated Omnibus Budget Reconciliation Act, regardless of any preexisting conditions. The downside: The employer no longer pays any portion of the premium. Being on COBRA buys you time to shop for another insurance plan--or another job.

Step 3

Look for coverage through a membership organization. If you have no access to group coverage through an employer, you may still be able to enroll in one through a professional association or other group. They cannot turn you down based on medical history. The Actors' Equity Association and the Writers Guild are two examples of organizations offering such coverage. Some college alumni associations and local chambers of commerce also have plans.

Step 4

Try the open market. According to the National Association of Health Underwriters, "In almost every state an individual insurance company can choose not to offer coverage to people with serious medical conditions." Even if they do offer you a plan, your rates may be relatively high or they may exclude your particular condition from the coverage. A local agent or broker can be a good bet, according to SmartMoney, because such professionals are likely to know the underwriting standards of various companies and thus have insight as to to who is likely to offer you a reasonable plan.

Step 5

Look for a state high-risk pool. According to the National Association of Health Underwriters, as of 2010, 33 states offer plans to medically "uninsurable" residents via such pools, and 12 others provide coverage by other methods, such as prohibiting companies from rejecting applicants based on medical history. State high-risk pools can be more expensive than open-market individual plans, and they tend to have long waiting lists, according to the "Healthcare Survival Guide," by Martin Rosen and Dr. Abbie Leibowitz.

Tips and Warnings

Within 30 days of losing your job, your former employer must notify you of your eligibility for COBRA; you then have 60 days to sign up before losing your eligibility. Generally when buying a private health insurance plan, you can get lower premiums by accepting a higher deductible, meaning you will pay for more of your health care out-of-pocket each year before your insurance kicks in.