Definition: If a health insurance plan is described as "guaranteed issue," it means that applicants cannot be turned down for coverage based on their health status. Most job-based group health plans offer coverage on a guaranteed issue basis. Also, a handful of states require insurers to offer guaranteed issue individual policies.
It is important to remember that applicants for guaranteed issue plans can be turned down or have their coverage discontinued for other reasons, such as fraud or non-payment of premiums.
