Is there any health insurance for a person with a illness?

In general, yes. However, currently, an insurance company may exclude coverage for the illness for which the person is being treated. Often, the exclusion is for a specific period of time, and thereafter, even that condition is covered.

Health insurance and certain other forms of personal insurance, such as life insurance, are underwritten and priced with an eye to the physical health of the person to be insured. Therefore, even if coverage is provided for the current illness, the premium may be, and probably will be higher than for a person with no health concerns.

There are certain health conditions which an insurer may not consider in making the decision as to whether or not to issue a policy. Since insurance is primarily regulated by the states, state law may differ on this point. A common example is sickle cell trait. One of the reasons for this is that the condition affects primarily blacks, and were insurers allowed to deny coverage for this condition, they would be effectively refusing to insurer a particular racial group.

Irrespective of the actuarial soundness of such an exclusion, it is the position of virtually all state legislatures that this sort of "discrimination" is unfair, and it is prohibited by the insurance codes of all, or virtually all, states.

If an individual is unable to obtain indemnity health insurance due to one or more illnesses, an alternative, albeit an imperfect one, is a medical discount plan. This is an arrangement whereby the participant pays a monthly fee for access to a network of providers who have agreed to provide a menu of services for a reduced fee from that normally charged.

It is important to remember that the consumer of the medical services remains financially liable for the payment of all charges under a discount plan arrangement, and that no risk is borne by the plan. It is also important to confirm periodically that the provider whom the consumer wishes to use remains a participant in the discount plan and that he/she/it in fact offers the discount that is represented by the plan.

Finally, many states have begun to regulate discount plans, so it is important to deal with one that is lawfully licensed with the state regulator. The state's department of insurance is often in charge of regulation, although these plans are not insurance per se.