Service Area

Published: | Updated: November 17, 2017

Definition - What does Service Area mean?

A service area refers to the area in which a health insurance company is allowed to provide its services. If a resident moves out of that area, they will no longer be eligible for health insurance coverage from their current provider.

Insuranceopedia explains Service Area

In the United States, service areas are commonly delimited by states lines. So, for example, a health insurance provider in Kentucky may not be able to provide policies to residents of Alabama.

As of 2017, there has been talk by President Donald Trump about getting rid of state lines for health insurers. However, we have yet to see whether this will come to be.

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