San Francisco has filed a lawsuit against the State of California over a law that allows health insurance companies to charge women higher premiums than men. Women pay as much as 39% more than men for the same coverage, and the law allows it. Insurance companies get away with it because they claim that women in their child bearing years use more health care than men.
Actually, the practice known as 'gender rating' is more common than we might think. Currently 38 states allow it, and two more allow it on a restricted basis. The California insurance commissioner's office stated that because the state legislature explicitly allows gender to be a factor when pricing insurance, their office must uphold the law.
Health advocates for women point out that the federal Equal Employment Opportunity Commission doesn't allow employers to charge women higher premiums based on gender alone. They say that if it is considered sex discrimination on the job, then the same rule should apply when women are seeking individual insurance.
Officials in San Francisco state that gender discrimination should not be allowed and the law should be repealed. San Francisco City Attorney Dennis Herrera argues that women are often priced out of private health coverage because of the inflated premiums, and that puts an added burden on city clinics and San Francisco General Hospital, which can't afford the extra cost.
When women are priced out of private health care and have to turn to an already strained public health care system, there is a clear problem, says Herrera. Since December, the legislature has introduced two bills (AB 119 and SB 54) which address the problem. Commissioner Herrera says he will drop the suit if either of these bills passes. One view holds that this can't be anything other than discrimination, while the other stands firm with the notion that this is nothing more than sound business practices.
Actually, the practice known as 'gender rating' is more common than we might think. Currently 38 states allow it, and two more allow it on a restricted basis. The California insurance commissioner's office stated that because the state legislature explicitly allows gender to be a factor when pricing insurance, their office must uphold the law.
Health advocates for women point out that the federal Equal Employment Opportunity Commission doesn't allow employers to charge women higher premiums based on gender alone. They say that if it is considered sex discrimination on the job, then the same rule should apply when women are seeking individual insurance.
Officials in San Francisco state that gender discrimination should not be allowed and the law should be repealed. San Francisco City Attorney Dennis Herrera argues that women are often priced out of private health coverage because of the inflated premiums, and that puts an added burden on city clinics and San Francisco General Hospital, which can't afford the extra cost.
When women are priced out of private health care and have to turn to an already strained public health care system, there is a clear problem, says Herrera. Since December, the legislature has introduced two bills (AB 119 and SB 54) which address the problem. Commissioner Herrera says he will drop the suit if either of these bills passes. One view holds that this can't be anything other than discrimination, while the other stands firm with the notion that this is nothing more than sound business practices.
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