What does "waiting period" refer to in health insurance?

The term "waiting period" in health insurance specifically refers to the time during which coverage is unavailable for pre-existing conditions. This means that when an individual enrolls in a health insurance plan, there is often a designated period where any medical issues that existed before the policy took effect will not be covered.

Insurers implement waiting periods to manage risk and prevent adverse selection, which occurs when individuals with known health issues are more likely to seek insurance coverage. By establishing a waiting period for pre-existing conditions, insurers can mitigate the potential for claims from individuals who might otherwise enroll in hopes of receiving immediate benefits for their ongoing medical needs.

The other choices discuss different aspects of health insurance but do not accurately represent the concept of a waiting period as it relates to pre-existing conditions. Claims submissions and application approvals are operational timelines rather than indicative of coverage limitations, while temporary medical conditions typically do not invoke waiting periods in the same context.