What does "guaranteed issue" mean in health insurance?

"Guaranteed issue" refers to a health insurance policy that must be issued to all applicants, regardless of their health status or medical history. This means that insurers cannot deny coverage based on pre-existing conditions, age, or other health-related factors. The concept is particularly important in ensuring that individuals, especially those with serious health issues who might otherwise struggle to obtain insurance, have access to necessary health coverage.

This provision protects consumers by providing them the security of being able to obtain insurance when they need it most, regardless of their medical background. It is often associated with certain government-mandated insurance programs and is a critical component in promoting broader access to health care. The other options do not accurately reflect the implications or requirements of guaranteed issue policies.