State Sued By San Francisco Over Health Insurance Discrimination

Recently the State Of California found itself slapped with a lawsuit from San Francisco over a law that allows health insurance companies to charge women higher premiums than men for similar coverage. Surveys have shown that women are apt to pay as much as 39% more than men, and they aren’t very happy about it. The insurance companies defend the practice as legitimate because they claim women of child bearing age require more health coverage than men of the same age.
The practice, which is known as ‘gender rating’ is actually widely practiced across the country. Currently 38 states allow it, and two more allow it with some restrictions. The California insurance commissioner’s office stated that until the legislature votes to change the law, they are legally bound to follow it as it currently stands.
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Officials in San Francisco state that gender discrimination should not be allowed and the law should be repealed.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.
Herrera states that the real issue is that women who are being priced out of the ability to acquire private health insurance are being forced to turn to the public health care system which is already financially strained. The state legislature has introduced two bills (AB119 and SB 54) since December, which address the issue. Commissioner Herrera has said he will drop the suit if either bill passes and is signed into law.