One of the trickest turns on the health care highway is the phrase “pre-existing condition.”

Health insurance companies see anyone who is already sick or injured as a liability. They make money when people pay insurance but are well and don’t need treatment. So to avoid insuring people with medical problems, they often have complicated “pre-existing condition” clauses.

These clauses limit your coverage for any care related to these pre-existing conditions. But confusion and financial diasters lie in the broad range of conditions deemed pre-existing and the health care treatment this excludes.

Take the case of Nancy Pessler, highlighted by CNN.com. Pessler has a rare condition, and her insurance company considers care for almost anything part of her “pre-existing condition.”

A routine doctor’s visit or treatment for a sinus infection aren’t covered, forcing Pessler to pay hundreds and thousands of dollars out of pocket for basic care. She tells CNN that because of the pre-existing ruling she is only covered in case of a catastrophic event, like if she was “hit by a bus.”

If you are facing an upcoming change in your insurance policy – because of a job change or job loss – make sure you read the fine print and get the facts about what is and isn’t covered because of any pre-existing conditions you might have.

How to protect yourself from wild medical bills

• Know your health: If you’re not sure if you have anything that might be considered a pre-existing condition, speak with both your doctor and an insurance representative. Your doctor can speak about your health record and may be familiar with what insurance companies look for. Also, because very health insurance company is different, you’ll want to know the policies before you make a coverage change. Conditions that may be considered pre-existing: longterm disease such as cancer, birth defects, major orthopedic work, major surgery, serious injury.
• Don’t sign until you’re sure: Once you know if you’re at risk for a pre-existing condition exemption, speak with insurance reps or the human resources department at your job. Put them to work for you, and don’t sign until you’re sure you’ll get the coverage you need. In Pessler’s case, she’s paying for coverage she is unable to use.  SEek help if you don’t understand your insurance company forms or the fine print.
• Be ready to take real action. In Pessler’s case, she is filing a lawsuit to get full benefits. This is a big step, but if you are already without coverage because of a pre-existing condition and have extremely high medical bills you may benefit from filing chapter 7 bankruptcy. Bankruptcy can address medical bills and may help you clear your debt so you can move on.