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[IP] Pre-Existing Conditions

Somewhere in the back of my mind is the thought that the old
clause in health insurance about "non coverage of
pre-existing conditions" had been found illegal/immoral/or
generally not nice.  According to my memory, this makes it
impossible for a new employer to exempt coverage for
example, diabetes.  

Does anyone know whether my mind is completely gone, or if
there is some thread of truth in it.

Insulin-Pumpers website http://www.insulin-pumpers.org/