Insurance Medical Report (MIB): Should I Apply for a New Policy and Risk Blacklisting?

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Topic Author
gaz101
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Insurance Medical Report (MIB): Should I Apply for a New Policy and Risk Blacklisting?

Post by gaz101 »

Do we have Bogleheads that are well versed with the MIB insurance medical report? It's the medical version of your "credit report" that list all sorts of health issues that you have and are shared with insurance companies. Technically, they list various "codes", but let's face it we know what's going on.

I know that insurers have used negative codes on people's MIB report to deny them insurance.

I am considering applying for more Disability Income insurance, and if I do my current health conditions will most certainly be reported to MIB. I won't disclose what it is but let's say it's quite common among Americans with bad lifestyle.

My main concern is once I apply for this insurance, that negative code is going to be reported to MIB, and I will get denied or faced increased scrutiny for any future health insurance. So I'm damned if I do, and damned if I don't. For the record, my MIB report is squeaky clean now.

I've listed down all possible insurance products that I may have need for in the future:
- Disability Income Insurance: This is what I'm applying for
- Health Insurance: Obamacare prevents pre-existing conditions denial, but I'm concerned that in the future if this is overturned, that my MIB negative codes will come back to haunt me.
- Term Life Insurance: Luckily I don't need this and don't practically forsee myself needing this in the future ever.
- Long-Term Care Insurance: Too young (not 40+) to purchase this, but most BH comments over the decades suggest that LTC is a bad deal.
- Anything else?

Thanks a lot for the discussion!
Last edited by gaz101 on Sun Sep 20, 2020 1:16 pm, edited 1 time in total.
afan
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Re: Insurance Medical Report (MBB): Should I Apply for a New Policy and Risk Blacklisting?

Post by afan »

gaz101 wrote: Thu Sep 17, 2020 12:50 pm Do we have Bogleheads that are well versed with the MBB insurance medical report? It's the medical version of your "credit report" that list all sorts of health issues that you have and are shared with insurance companies. Technically, they list various "codes", but let's face it we know what's going on.

I know that insurers have used negative codes on people's MBB report to deny them insurance.

I am considering applying for more Disability Income insurance, and if I do my current health conditions will most certainly be reported to MBB. I won't disclose what it is but let's say it's quite common among Americans with bad lifestyle.

My main concern is once I apply for this insurance, that negative code is going to be reported to MBB, and I will get denied or faced increased scrutiny for any future health insurance. So I'm damned if I do, and damned if I don't. For the record, my MBB report is squeaky clean now.

I've listed down all possible insurance products that I may have need for in the future:
- Disability Income Insurance: This is what I'm applying for
- Health Insurance: Obamacare prevents pre-existing conditions denial, but I'm concerned that in the future if this is overturned, that my MBB negative codes will come back to haunt me.
- Term Life Insurance: Luckily I don't need this and don't practically forsee myself needing this in the future ever.
- Long-Term Care Insurance: Too young (not 40+) to purchase this, but most BH comments over the decades suggest that LTC is a bad deal.
- Anything else?

Thanks a lot for the discussion!
This is a question of when, rather than whether, the MBB learns of your conditions.

If the protection against pre existing conditions for health insurance were to go away, then there would be the same medical underwriting there is now for disability and, I assume, LTC. So I don't know that you are risking anything by applying now and getting your insurance now. Either the insurance world finds out about your conditions now when you apply for disability or later when you apply for that or some other coverage.

It might be different if you thought this lifestyle condition may get better if you improve your health habits. Those habits are very hard to break, so I would be hesitant to assume you can do it.

Against that is the risk of going without disability insurance while trying to improve your health profile. Maybe worth the risk in the short term if you expect a real change.
Other than that, I don't see that it matters. You will face underwriting for insurance that requires it, when you apply, now or then.
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egrets
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Re: Insurance Medical Report (MBB): Should I Apply for a New Policy and Risk Blacklisting?

Post by egrets »

Every place I worked before retirement supplied disability insurance... Of course, that's no help if you wind up between jobs.

If you get health insurance now, and the pre-existing condition protection goes away, I wonder if they could cancel your insurance or would have to keep it in force ad infinitum since you already have it.
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Stinky
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Re: Insurance Medical Report (MBB): Should I Apply for a New Policy and Risk Blacklisting?

Post by Stinky »

afan wrote: Thu Sep 17, 2020 1:14 pm This is a question of when, rather than whether, the MBB learns of your conditions.

If the protection against pre existing conditions for health insurance were to go away, then there would be the same medical underwriting there is now for disability and, I assume, LTC. So I don't know that you are risking anything by applying now and getting your insurance now. Either the insurance world finds out about your conditions now when you apply for disability or later when you apply for that or some other coverage.

It might be different if you thought this lifestyle condition may get better if you improve your health habits. Those habits are very hard to break, so I would be hesitant to assume you can do it.

Against that is the risk of going without disability insurance while trying to improve your health profile. Maybe worth the risk in the short term if you expect a real change.
Other than that, I don't see that it matters. You will face underwriting for insurance that requires it, when you apply, now or then.
Afan raises some good points, and I agree with them.

OP, you’ll be well served to fix whatever lifestyle condition you’re currently experiencing, if that’s possible. That would be the best result for the primary concern of your overall health, and your secondary concern of getting insurance at a reasonable price.

Also, if you’ve already been treated by a doctor for your lifestyle condition, then it will be in the doctor’s records. If the insurance company requests the doctor’s records as a part of the underwriting process, then your lifestyle condition will already be reported to the insurance company.

So it may already be too late to avoid informing the insurance company of your condition when you apply. It’s better to be improving your condition than to do nothing.
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Topic Author
gaz101
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Re: Insurance Medical Report (MBB): Should I Apply for a New Policy and Risk Blacklisting?

Post by gaz101 »

There are some legit points raised, but the 3rd option is not apply now, wait for my medical condition to improve until I can go off the meds. Then IF there is a need for future insurance apply with a clean slate of health. Can always change doctors and pharmacy so that records are clean.
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Stinky
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Re: Insurance Medical Report (MBB): Should I Apply for a New Policy and Risk Blacklisting?

Post by Stinky »

gaz101 wrote: Fri Sep 18, 2020 6:26 pm Can always change doctors and pharmacy so that records are clean.
I’d be cautious about intentionally misrepresenting your medical history when applying for insurance of any type.

If the application asks for, as an example, “all doctors you’ve seen in the past five years”, and you disclose only your current doctors, you run the risk of having policies rescinded or claims denied if the facts come to light.
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FIREchief
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Re: Insurance Medical Report (MBB): Should I Apply for a New Policy and Risk Blacklisting?

Post by FIREchief »

In my experience, insurance companies don’t do the real deep dive until a claim is made.
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lessismore22
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Re: Insurance Medical Report (MBB): Should I Apply for a New Policy and Risk Blacklisting?

Post by lessismore22 »

If you're referring to the MIB(Medical Information Bureau), you are correct that once your application is rated/declined due to your health condition that it will remain on your 'record'. The MIB has been used by insurance companies for a long time to accurately assess the risk of issuing policies to consumers. All major insurance companies report to it and share the results openly with their competitors. Without it, fraud could run rampant and greatly increase the premiums for otherwise healthy applicants. Technology being what it is, there is little be gained by hiding your medical history on an insurance application. Fix the underlying condition, or pay the excess premium.
TropikThunder
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Re: Insurance Medical Report (MBB): Should I Apply for a New Policy and Risk Blacklisting?

Post by TropikThunder »

FIREchief wrote: Fri Sep 18, 2020 9:30 pm In my experience, insurance companies don’t do the real deep dive until a claim is made.
Exactly, that way they can collect the premiums and only take a look under the hood when they’re about to have to pay out a claim.
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gaz101
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Re: Insurance Medical Report (MBB): Should I Apply for a New Policy and Risk Blacklisting?

Post by gaz101 »

TropikThunder wrote: Fri Sep 18, 2020 11:25 pm
FIREchief wrote: Fri Sep 18, 2020 9:30 pm In my experience, insurance companies don’t do the real deep dive until a claim is made.
Exactly, that way they can collect the premiums and only take a look under the hood when they’re about to have to pay out a claim.
The policy I'm looking at has a no-contest after N years clause. So this should not happen in theory.
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Stinky
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Re: Insurance Medical Report (MBB): Should I Apply for a New Policy and Risk Blacklisting?

Post by Stinky »

gaz101 wrote: Sun Sep 20, 2020 11:33 am
TropikThunder wrote: Fri Sep 18, 2020 11:25 pm
FIREchief wrote: Fri Sep 18, 2020 9:30 pm In my experience, insurance companies don’t do the real deep dive until a claim is made.
Exactly, that way they can collect the premiums and only take a look under the hood when they’re about to have to pay out a claim.
The policy I'm looking at has a no-contest after N years clause. So this should not happen in theory.
What if you have a claim in the first N years?
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Katietsu
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Re: Insurance Medical Report (MBB): Should I Apply for a New Policy and Risk Blacklisting?

Post by Katietsu »

egrets wrote: Thu Sep 17, 2020 1:26 pm Every place I worked before retirement supplied disability insurance... Of course, that's no help if you wind up between jobs.

If you get health insurance now, and the pre-existing condition protection goes away, I wonder if they could cancel your insurance or would have to keep it in force ad infinitum since you already have it.
Before the ACA, this was dependent on state law. In other words, some insurers in some states could only drop you for non payment or if they quit offering health insurance in your location. In other states, some insurers were well known for dropping people with individual policies on the annual renewal date if they had been diagnosed with cancer or some other expensive condition.
Topic Author
gaz101
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Re: Insurance Medical Report (MBB): Should I Apply for a New Policy and Risk Blacklisting?

Post by gaz101 »

Stinky wrote: Sun Sep 20, 2020 11:49 am
gaz101 wrote: Sun Sep 20, 2020 11:33 am
TropikThunder wrote: Fri Sep 18, 2020 11:25 pm
FIREchief wrote: Fri Sep 18, 2020 9:30 pm In my experience, insurance companies don’t do the real deep dive until a claim is made.
Exactly, that way they can collect the premiums and only take a look under the hood when they’re about to have to pay out a claim.
The policy I'm looking at has a no-contest after N years clause. So this should not happen in theory.
What if you have a claim in the first N years?
Then the claim could be denied. I'm looking to increase my insurance coverage, so getting denied would be bad, but not disastrous.

The issue that you're not considering if I apply now with medical issues, I may get denied ENTIRELY. Then all my future insurance applications get screwed. If I could get a guarantee that if I apply now, and I will get approved, or approved with higher premium, but know that before they submit it to the MIB, then I would go for it.
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