As an employer, providing a comprehensive Group Health Insurance plan is one of the most valuable benefits you can offer your employees. But you might wonder whether that's possible when some are already living with existing medical conditions. The brief answer is that yes, it's possible. But it's important to understand how to go about selecting the right policy to cover this eventuality, and what costs are involved. In this article, we'll explain what qualifies as a pre-existing condition, and how to best understand what coverage your employees will receive.What qualifies as a pre-existing condition?A pre-existing condition refers to any injury, illness or medical issue for which an individual has received treatment, advice, diagnosis or testing before enrolling in your company's health plan. In a typical policy, this will include chronic conditions such as diabetes, cancer, heart disease and mental health disorders, as well as acute issues such as injuries that require medical care. It's important to note that even if an employee hasn't received an official diagnosis yet, symptoms or tests can still categorise something as a pre-existing condition.Are pre-existing conditions covered by Group Health Insurance?Some standard Group Health Insurance plans automatically include coverage for employees' pre-existing conditions. Alternatively, if base coverage for pre-existing conditions is excluded, employers can often add it by purchasing a pre-existing condition rider or endorsement at additional cost.However, you should not automatically assume all Group Insurance policies cover pre-existing conditions. Whether or not they do depends on how the plan is underwritten. There are two common underwriting methods that Group Health Insurers use when evaluating coverage for employees' pre-existing conditions: Full Medical Underwriting and Moratorium Underwriting.Full Medical Underwriting Under this approach, the insurance company carries out an in-depth review of all employees' full medical histories and current conditions during the enrolment process. You provide detailed data on any past treatments, diagnoses, conditions, and medications for your workforce. The insurer then decides which specific pre-existing conditions they'll cover and what premium rates apply based on your group's risk assessment.While more time-intensive upfront, full underwriting provides certainty for both you and your employees regarding which pre-existing conditions will be covered. However, employees with significant pre-existing conditions may still face higher premiums or coverage limitations.Moratorium Underwriting An alternative approach, known as Moratorium Underwriting, does not require employees to initially disclose detailed medical data for underwriting. Instead, when an employee needs treatment, the insurer investigates their recent medical records (often anywhere from 6 months to 5 years prior) to determine whether the condition should be classified as pre-existing.If no recent treatment is found within that moratorium window before the health plan start date, then the condition qualifies for coverage as a new issue rather than pre-existing. However, if employees have previously received treatment for the condition, that may exclude them from coverage under this method.Moratorium Underwriting offers the benefits of being less administratively burdensome upfront and providing more employee privacy regarding medical data. However, it does mean some employees will be excluded, plus there is more uncertainty until claims arise about which pre-existing conditions actually have coverage.Pros and cons As an employer, deciding how to handle pre-existing condition coverage in your Group Health plan requires carefully weighing the costs against the benefits for your workforce. And there are pros and cons to both approaches.On the one hand, providing automatic coverage for pre-existing conditions through a fully underwritten policy can give your employees peace of mind and avoid exclusions. However, this level of comprehensive coverage usually comes at a higher cost, especially if your workforce has a higher prevalence of chronic conditions.A Moratorium Underwriting approach that excludes recent pre-existing conditions upfront may allow you to secure a lower premium rate initially. But there are also drawbacks. You lose the certainty of knowing exactly what conditions are covered from day one. And there's also the risk that employees could be denied coverage unexpectedly for conditions deemed pre-existing after a claim triggers a medical record review.How to choose Group Health Insurance for pre-existing conditionsMaking a choice will depend on your budget, employee needs, and your priorities around healthcare access and costs. Some employers choose a hybrid approach to Group Health Insurance, such as a base moratorium plan coupled with mandatory or optional pre-existing condition buy-up coverage. This protects the core workforce while allowing others to secure more comprehensive benefits if needed.Whichever route you go, clear communication with employees is critical. Make sure they understand the nuances of what is and isn't covered by their Health Insurance so they can make informed healthcare decisions. Providing FAQs, distributing plan documentation, and having the insurance provider give informational sessions can all help increase understanding.You'll also want to evaluate pre-existing condition coverage alternatives each year during renewal and reassess whether to modify your approach to Group Health Insurance based on changes to your workforce, claims experience, or budget constraints. An insurance broker can help you benchmark the competitiveness of renewal rates.About YuLife.YuLife is working to reimagine the insurance industry by protecting lives, rewarding living and inspiring life. We’re on a mission to transform traditional insurance into a life-enhancing experience each employee will value and use daily. How does it work? Our award-winning app uses behavioural science and game mechanics to reward your people for living well while offering protection in case of crisis. And with our top-rated employee assistance programme, your team gets access to mental, financial and social support, virtual GPs, nutritionists, life coaches and more to help them live their best lives.Because we believe that your employees should benefit from their insurance from day one — and that wellbeing should be accessible every day, for everyone.Request a demo for your team today.