Service Area
Updated: 07 January 2025
What Does Service Area Mean?
A service area is the geographic region where a health insurance company is authorized to offer its services. If a policyholder relocates outside this area, they will no longer qualify for coverage under their current provider.
Insuranceopedia Explains Service Area
In the United States, service areas are typically defined by state boundaries. For instance, a health insurance provider operating in Kentucky may not be authorized to offer policies to residents of Alabama.
As of 2017, there were discussions led by President Donald Trump about eliminating state boundaries for health insurers. However, it remains uncertain whether this change will be implemented.
