San Francisco City Attorney Files Lawsuit Against State Over 'Gender Ratings' For Individual Health Plans

Main Category: Health Insurance / Medical Insurance
Also Included In: Litigation / Medical Malpractice
Article Date: 30 Jan 2009 - 3:00 PDT

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San Francisco City Attorney Dennis Herrera on Tuesday filed a lawsuit against the state of California alleging that the state is discriminating against women by allowing health insurers to impose so-called "gender ratings" when determining premiums for individual health plans, the Los Angeles Times reports. The lawsuit contends that California Insurance Commissioner Steve Poizner (R) and Cindy Ehnes, director of the California Department of Managed Health Care, approved the gender ratings rule, which allows insurers to take an individual's sex into account when setting premiums, and women in the state are being charged up to 39% more for health insurance coverage than men as a result. The lawsuit claims the rule should be declared unconstitutional.

Darrel Ng, a spokesperson for the insurance department, said, "The Legislature explicitly lists gender as one of the factors to be considered. Until the Legislature changes the laws or the courts decide differently, we will uphold the law." According to state law, "Unless otherwise prohibited by law, premium, price or change differentials because of the sex of any individual when based on objective, valid and up-to-date statistical and actuarial data or sound underwriting practices are not prohibited."

Since December 2008, two bills that would ban gender rating have been introduced in the state Legislature: AB 119 by Assembly Member Dave Jones (D) and SB 54 by state Sen. Mark Leno (D). Herrera said if the bills are signed into law, the suit could be dropped (Olivarez-Giles, Los Angeles Times, 1/28).

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