Medical underwriting refers to the process used by insurance companies to evaluate an applicant’s health and lifestyle – and the risks to the insurance company of accepting the applicant based on medical history, habits (such as smoking, drinking), dangerous occupations or hobbies), physical health (age, weight, height), and other factors. The process considers at what price and under what conditions an applicant will be accepted.
Medical underwriting has been largely replaced with standard health insurance plans available since the Affordable Care Act (ACA) was enacted (in stages) beginning in 2010. Full implementation started January 1, 2014.
Medical underwriting is still used for some types of insurance like Medigap plans and specialized disability and life insurance plans, where underwriters review medical records, family history, and may even require a medical exam to set premiums or decline coverage.