What does "guaranteed issue" mean in health insurance?

"Guaranteed issue" refers to a provision in health insurance policies that requires insurers to accept all applicants for coverage without considering their health status, medical history, or pre-existing conditions. This means that regardless of an individual's health situation, they cannot be denied insurance coverage, which promotes inclusivity in access to healthcare.

This concept is critical in protecting individuals with serious health issues or those who may be at risk of insurance denial due to their medical conditions. By ensuring that everyone has the right to obtain insurance, guaranteed issue helps create a more equitable healthcare system where coverage is accessible to all, regardless of their health circumstances.

The other options present concepts that do not align with the definition of guaranteed issue. For instance, insurance without a waiting period, coverage only for minor ailments, or insurance that allows for increased premium rates do not pertain to the core principle of ensuring all applicants can receive insurance coverage without barriers related to health status.