Insurance Center

The chairman of the Assembly Health Committee for the state of California Assemblyman Dave Jones, D-Sacramento says that the fact that insurance rates vary so widely acts to undercut the insurers’ argument that higher rates for women are based on their actuarial expenses.
He says that no consistency or rationality exists for this form of pricing which appears to be all over the map. Therefore Jones and others believe that the processing is not based on actuarial science, but it is based on pure and simple discrimination against women.

It has actually been only a few years since this practice of charging women more than men in the individual health care market appears to have begun, and health experts agree that there is no clear reason for it. But a Mercury News study of varying rates among insurance companies for different age groups shows that among the plans reviewed the two that have the widest gender gap of 25 percent are both currently being sold by the Aetna Insurance Company.

When a request was made to Aetna for an interviewer by phone, the company declined the request, but responding through an email, a company spokeswoman wrote that the insurer's rates are a reflection of the underlying costs for men and women by age as documented through recent actuarial studies and through ongoing general claims experience.

There are some health care experts who argue that barring insurers from charging differently as based on gender would ultimately have a relatively small effect on rates. In order order to make adjustments for the differences in processing, the insurers will probably and most likely end up charging men slightly more.

What amounts to a flawed market

A senior program officer at the California Healthcare Foundation Marian Mulkey, says that the individual market is flawed by the fact that it is very expensive to purchase coverage and in many cases those people who are in the greatest need for coverage are the ones who find it impossible or very difficult to get. At the same time as a member of the healthcare community the finds it difficult to think about policy tweaks, one example being the gender bill that could make a significant difference.

The governor of California, Gov. Arnold Schwarzenegger, spent more than a year advancing the cause for comprehensive health care reform that would included a complete overhaul of the individual market. He was defeated however, last year in the Legislature. Now a similar makeover attempt is being card forth by President Barack Obama.

Health care advocates in the meantime, are saying that they are trying to change the current system.
Assemblyman Jones says that when you are trying to encourage more women to get health insurance, it doesn't make sense to charge them are higher premium than that being charged men.