Date Added: May 2010
In certain situations, Americans who become chronically ill have to pay higher rates to continue their health insurance coverage. Indeed, although the majority of Americans are insured, hardly anyone is fully protected against the risk that their next insurance policy will cost considerably more than their current one. Although illness can last for any period of time, a typical health insurance contract lasts for one year. This means that insurance contracts often have to be renewed while people are sick; and policy-holders may be exposed to reclassification risk - the risk that their premiums will be increased because they are ill.