The application rejection rate for the health insurance industry has increased to more than one-in-five applications (22 percent), according to “Health Insurance Application Rejection Rates Rising? A state-by-state look at health insurance declination rates,” from HealthPocket Inc. That marks an increase from one-in-seven rejection rate for individual and family insurance applications in 2010, as per a congressional study of the largest for-profit insurers.

“Clearly there is great variability across states and within states in terms of how frequently an insurer rejects a health insurance application, but nationally it seems to be occurring more frequently than industry analysts had assumed,” said Kev Coleman, head of research and data at HealthPocket. “What is unclear is whether some insurers have increased their declination rate in order to improve risk pool health and profitability prior to 2014, when insurance companies can no longer reject applications based upon health status or pre-existing medical conditions.”

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