What does the term "waiting period" refer to in health insurance?

The term "waiting period" in health insurance specifically refers to a set period before certain coverage becomes effective after enrollment. During this waiting period, individuals may have to wait a specified length of time after they enroll in a health insurance plan before they can start utilizing certain benefits or services. This is commonly applied in instances like pre-existing conditions or specific types of care.

Understanding the waiting period is crucial because it impacts how soon new policyholders can access full benefits after signing up. This concept allows insurance companies to manage risk associated with new policy enrollments and ensures that individuals have a clear understanding of when their coverage starts.