The ACA (Affordable Care Act), put into place March 2010, does not allow insurers to deny anyone coverage due to pre-existing conditions. Nor can they charge a higher premium for someone who does.
Because SW was a self-employed contractor/consultant she would have been eligible to enroll in a private health plan, or find coverage through the Health Insurance Market Place.
Self-employed people
Federal guidelines would allow the children to remain covered under CW's group health plan through his employer.