What is a "waiver" in health insurance?

In health insurance, a "waiver" refers to a formal relinquishment of the right to a benefit or coverage under a policy. This concept is essential in understanding the rights and responsibilities of policyholders, as well as what options they might forfeit when they agree to a waiver.

For instance, when an individual signs a waiver, it may indicate their consent to accept certain risks and their understanding that specific benefits will not be available to them, often to streamline the application process or as part of a negotiation in insurance coverage terms. This can occur in various contexts, such as during the enrollment process where a person may choose not to take certain benefits that could otherwise be provided under the plan. By agreeing to this waiver, they acknowledge the loss of those potential benefits.

This understanding is crucial for anyone working in health insurance, as it affects both the insurer's obligation and the insured's expectations regarding their coverage.