An Analysis of the Effects of Medical Underwriting

Does medical underwriting really have a positive financial impact on insurers? This study compared claims allowed for two different pools of small firms covered by the same insurance company -- one guaranteed issue and one fully medically underwritten -- to determine if medical underwriting reduces the financial cost to an insurer of covering a particular group. This research was intended to provide policymakers with an indication of the potential impacts of proposed efforts to limit medical underwriting through regulation.