ABSTRACT
In 1990, over 60 percent of group health insurance plans contained exclusions of coverage for preexisting conditions, signifying the denial of benefits for any illness present at the time the insurance is obtained (8). Nine months is the average waiting period before a newly insured person receives coverage for a preexisting condition, but waiting periods can last up to seven years (9). Change of employment often triggers a new restriction on coverage for preexisting illness-a common occurrence, since the average employee remains in a job for only 4.2 years (9). An estimated 81 million Americans under 65 years of age have medical problems (such as hypertension, diabetes, asthma, and chronic back pain) that insurance companies may consider preexisting conditions (5). In 1990, 6 percent of Americans reported that they had been denied all or a part of health insurance coverage because of an existing health problem (10).
