Tag Archives: life

HIPAA (Health Insurance Portability and Accountability Act) was created in the early 1990′s to establish strict laws and defined rules about pre-existing conditions. The act forced insurance companies to enroll employees in a plan even if they did not have prior coverage, and even if the employees did have a pre-existing condition. Specific regulations were created to ensure the insurance companies were not being taken advantage of by people only purchasing insurance after they developed an illness. Because some people were taking advantage of the lack of laws prior to HIPAA, and only purchasing insurance after becoming sick, many companies began denying those with pre-existing conditions. Therefore, laws were put into place to regulate how companies insured their employees to make sure conditions like pregnancy or unpredictable diseases could be fairly covered by insurance. Continue reading →