Medical history disregarded: What is it?

Roman Danaev

19 December 2024

Health insurance makes a big difference for a business, but figuring out the right underwriting is a lengthy journey. The type you pick will impact both the cost of your policy and how claims are processed later. In this guide, we’ll break down what medical history disregarded (MHD) underwriting is all about and help you decide if it’s the right fit for your business.

What does a medical history disregarded policy mean?

Medical history disregarded (MHD) refers to previous medical conditions that won’t keep you from making claims under your policy. This means you can claim for any health issues that existed before your private medical insurance began.

Medical history disregarded underwriting is often used in large corporate insurance plans (e.g., these from Bupa or Vitality) in the UK, where managing many members tends to be complicated. The higher premium offers extra protection against claims for pre-existing conditions. It can also allow for coverage with fewer members. However, it’s not always a straightforward option, so it’s important to give careful consideration to whether MHD is the right choice for you.

Will MHD underwriting be more expensive for a business?

Yes, with medical history disregarded underwriting, you might find that costs are a bit higher. The insurer is willing to take on that additional risk, which means they are willing to cover more in claims than other companies.

If your staff members are eligible for coverage but have ongoing medical conditions, renewal premiums could go up each year. But if you went with full or moratorium underwriting options, that wouldn’t be a worry. In those cases, pre-existing conditions don’t factor into your policy rates because it’s impossible to know what someone has before you purchase coverage based on those criteria.

What does medical history disregarded underwriting cover?

MHD covers pre-existing conditions without worrying about when they started. As for what exactly it covers, here’s what you can expect with a medical history disregarded policy:

• Complete coverage for any pre-existing health conditions
• No exclusions based on your health history
• Conditions that existed before your policy started are still covered
• Support for acute conditions

Acute conditions are temporary, treatable issues — e.g., heart attacks, fractures, or burns. They come on suddenly and typically require quick medical attention.

What isn’t covered?

Medical history disregarded underwriting offers a lot of great coverage, but there are a few things you should know that usually aren’t included:

• Ongoing treatment for chronic conditions like diabetes or osteoporosis is typically excluded; flare-ups may be covered.
• Cosmetic procedures, such as plastic surgery or Botox, are not covered.
• Experimental treatments that are not widely accepted usually won’t be included.

Pre-existing medical conditions may have limited coverage during waiting periods if they existed before the policy started.

Specific exclusions vary by health insurer, so it’s essential to review the policy details.

MHD vs other underwriting methods

When you go with moratorium underwriting, for example, your employees can sign up for the policy without having to provide their full medical history. This is convenient but may lead to longer claim processing times. That’s because, when a claim is submitted, the insurer will need to review their medical records to determine if the condition is covered.

In contrast, with full medical underwriting, employees must provide information about their medical history when they sign up for the policy. Although this feels like an extra step, it actually simplifies the claims process later. Everyone knows from the beginning which pre-existing conditions are excluded, which helps avoid confusion down the line.

In comparison to these two, MHD allows for a more straightforward claims process than a moratorium plan or full medical underwriting but for an extra cost.

What are the pros and cons of medical history disregarded for an employer?

Should I get medical history disregarded underwriting for my business?

Underwriting on a medical history disregarded basis may be the most expensive option for covering all eligible pre-existing conditions, but many employers prefer it. They like that it allows them to ignore employees’ medical histories and helps create a fair workplace where no one has an unfair advantage because of their health issues.

On top of that, going with MHD means you avoid the high administrative costs associated with traditional insurance premium collection.

When is MHD the right choice?

Here’s why you might want to consider private medical insurance policies with MHD underwriting:

Attracting top talent

Private health insurance is a coveted perk, which gives your team quick access to quality care without the hassle of NHS waiting lists. Medical history disregarded (MHD) covers all pre-existing conditions, so your employees get the private treatment they need without any fuss.

Supporting older employees

As we age, health issues become more common. Hiring older employees brings valuable experience, and MHD allows you to provide them with excellent coverage without worrying about their medical histories.

Accommodating complex medical histories

MHD is also great for current employees with complex medical backgrounds. Instead of facing delays and potential exclusions, they can receive the treatment they need, no matter when symptoms start.

Handling physically demanding or stressful work

In jobs with heavy lifting or high stress, quick access to treatment is vital. MHD helps you recruit experienced employees who have health challenges. For instance, if an employee regularly sees a physiotherapist for a back issue, MHD lets you offer them a job without the fear of losing their treatment. This approach also supports those who have been laid off, giving excellent health coverage as they transition to new roles.

Does medical history disregarded underwriting cover chronic conditions?

Chronic conditions are long-term health issues that require ongoing management, such as diabetes, asthma, arthritis, and hypertension. With medical history disregarded underwriting, employees don’t need to share their medical histories, but the policy may have specific rules regarding coverage.

For example, an acute episode of a chronic condition — like a severe asthma attack or a flare-up of arthritis — might be covered. However, regular treatments or check-ups for these ongoing conditions tend to be excluded in most cases.

What is the process for getting medical history disregarded in the health insurance market?

Medical history exclusion is a great choice for companies with over 20 employees, available as part of a group health insurance policy. It’s rare to find this kind of policy for smaller groups, but you’ll see it offered by major insurers like Bupa, Aviva, and AXA.

You can’t usually get MHD as an individual policy, but you can find it in international healthcare packages. These plans come with some great benefits, including specialist access, maternity care, and coverage for pre-existing conditions. Just keep in mind that this kind of coverage is typically aimed at people with higher incomes.

What is an alternative insurance policy?

Moratorium underwriting is a great alternative to medical history disregarded underwriting. With this type of insurance, you and your employees don’t need to disclose medical histories before coverage starts. However, that medical information will be necessary if a claim arises later. It allows employees to receive treatment for pre-existing conditions as long as they’ve been symptom-free for a specific period.

For example, consider someone who has a history of asthma. If they experience any asthma-related issues within the first two years of the policy, those won’t be covered under eligible conditions. However, once that period is over, if their asthma flares up again, they would be eligible for medical cover.

Final words

If you’re looking for a business health insurance plan that includes coverage for your employees’ pre-existing conditions, medical history disregarded (MHD) underwriting might be the way to go, especially if you have a good number of employees.

Keep in mind that MHD offers comprehensive cover, so it tends to be on the pricier side. But with that higher cost, you get plenty of benefits, including a much faster claims process.

If you stumble upon a better deal somewhere — maybe lower premiums or better benefits — you can definitely think about switching providers. In that case, you might want to look into options like continuing personal medical exclusions to keep your coverage while making the move.