Medical Information Bureau
What is the Medical Information Bureau?
The Medical Information Bureau (MIB) functions like the credit bureau except it includes your health history instead of your financial history. The MIB collects and organizes health histories of people who apply for health insurance and life insurance and shares the information with insurers that subscribe to the MIB.
For insurers to assess an applicant’s risk and calculate affordable rates, insurance companies use information in the MIB report. The Medical Information Bureau does not keep detailed medical records for individuals.
Insurers do not have access to a person’s private medical history. Instead, the bureau uses coded information to outline an applicant’s medical history.
Like a credit report, the report from the MIB is available free of charge to consumers once per year. The report does not include a record of whether a person has been approved or denied insurance in the past. Insurance companies cannot refuse to insure an individual based on the information in the report alone.
Medical Information Bureau example
When people apply for health insurance or life insurance, they have to fill out an application and questionnaire that outlines their entire health history. The information in the application should include previous and existing medical conditions, medication history, risky activities, driving records and more.
The insurance company compares this data with the information in the report from the MIB.
The insurance company then looks for any information that has been misrepresented or omitted. If it finds discrepancies, it conducts an investigation to gather more information and then approves or denies the person’s application.
Discrepancies create a red flag in your Medical Insurance Bureau report. Subscribing insurers can see that red flag, and this could impact your ability to obtain insurance or get low rates.
Information on the MIB report stays for seven years. It is important to provide honest and accurate information to prevent red flags.
Are you in the market for life insurance? Check out Bankrate’s tips for shopping for life insurance.