What is a “waiting period” in health insurance?

A "waiting period" in health insurance refers to a designated time frame during which coverage for certain benefits is not effective immediately after an individual enrolls in a policy. During this waiting period, the insured person may not be able to access specific health benefits, such as treatments or procedures, that are covered under the insurance plan. This concept is particularly common in policies regarding pre-existing conditions, where an insurer may impose a waiting period before those specific conditions are covered.

The idea behind a waiting period is to manage the risk for insurers, ensuring they are not immediately liable for high-cost interventions just after a policyholder joins. This mechanism helps to balance the cost of insurance and promotes a healthier insurance pool by discouraging people from only seeking coverage when they anticipate needing medical care.

Understanding this concept is crucial as it emphasizes the importance of being aware of the specifics of a policy upon enrollment, including which benefits may be delayed before they are accessible.