New law targets gender discrimination in health insurance

After Jan. 1, Health insurers and HMOs won't be able to charge women higher rates than men for the same type of individual policy.

A new law signed by Gov. Arnold Schwarzenegger earlier this week prohibits such discrimination, which resulted in women paying anywhere from 5% to 40% more then men for some coverages.

"Higher rates for women keep them from being able to afford coverage, which means reduced access to healthcare and poorer health outcomes for women," said Assemblyman Dave Jones (D-Sacramento), the author of AB 119.

"Women seeking health insurance in the individual market will now have protections from gender discrimination."

Jones noted that a 2008 report from the National Women's Law Center reported large differences in the rates insurers charged women and men for identical health plans, most of which did not cover maternity benefits.

Jones' bill was sponsored by the American College of Obstetricians and Gynecologists and San Francisco City Atty. Dennis Herrera.

-- Marc Lifsher

Comments

[Shannon Love]

The fact that the government of California apparently doesn't understand how insurance works goes a long way in explaining California's current financial woes. Insurance is based on risk of cost. More risk of cost, means higher premiums. If you set up a system on any other basis, you've stopped using insurance and moved on to another system. Perhaps you should get some actuaries to explain things to you.

I would also note that no one seems to find it discriminatory to force men to subsidize women's insurance premiums by paying for insurance against medical needs they will never have. If women were subsidizing men's insurance premiums I doubt the people who support this measure would find that acceptable.