Arkansas Health Insurance: Knowing Your Rights

Arkansas health insurance companies are regulated by the state government in order to protect both the companies themselves and those who hold policies with them. All states offer basic guidelines regarding standard practices in the insurance industry. It is important to understand the basic rights that you have as an Arkansas health insurance policyholder before you sign on to a particular company. That way, you can rest assured that your Arkansas health insurance company is giving you the best coverage you can find.

The pre-existing condition clause is perhaps the most important aspect of the Arkansas health insurance law. In Arkansas, health insurance companies can refrain from paying claims for the treatment of illnesses that existed prior to an individual’s policy with the company. For instance, if you had a heart condition for which you received treatment from one Arkansas health insurance company, and then you switched insurance providers, the new Arkansas health insurance company is not required to cover new claims for the same condition. Unlike in some states, Arkansas health insurance can permanently exclude these conditions from your coverage. Some Arkansas health insurance companies will only deny coverage for a limited amount of time, so it is important to research insurers’ policies on pre-existing conditions before committing to one company.

Arkansas health insurance policies are also required to be guaranteed renewable. This means that Arkansas health insurance policyholders are guaranteed the right to renew their policies at the end of each term. The Arkansas health insurance company cannot refuse to renew a policy based on anything except failure to pay a premium. This law protects individuals from being dropped from their Arkansas health insurance if they are sick and file a lot of claims. Arkansas health insurance companies cannot base renewals on the amount of money paid out for an individual.

When applying for an Arkansas health insurance policy, a company does have the right to refuse its service based on your age or your health status. For instance, an Arkansas health insurance company may choose not to offer you coverage if you are over a certain age or if you have a debilitating disease. If an Arkansas health insurance company does choose to cover a high risk individual, the company can charge as high a premium as they wish, as there are no laws regarding Arkansas health insurance companies premium rates.

Another important Arkansas health insurance law is that temporary insurance must always be available to those who either lose or quit their jobs and are no longer eligible for group insurance. Arkansas health insurance companies are required to offer what they call conversion policies. These policies are meant to be short-term, and they are used to cover individuals while they are between jobs or while they are waiting to be eligible for a new Arkansas health insurance group policy at a new place of work. Unfortunately these Arkansas health insurance conversion policies are much more expensive than group policies. However, since they are meant to be temporary they act as a much needed alternative to having no health insurance at all.

Arkansas Health Insurance: Knowing Your Rights

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