Cost of Care News 

California bans health insurance gender ratings

Partner: 
Contra Costa Times
Monterey County Herald
Oakland Tribune
Vacaville Reporter
Summary: 

Why do women often pay higher insurance premiums than men? According to insurance companies, it’s all based on claims experience.  And partly because of the costs of child-bearing, women on average pay higher rates. But starting Jan. 1, 2011, insurers in California can no longer take differences between men and women into account. Because of a new California law, gender-based premiums join other banned categories such as race, ethnicity and religion. The upshot is that, on the private insurance market, rates will go down for many women. But for a few, especially older beneficiaries, the tables get turned and men get the lower rates.

 

Results
Gender-based pricing ban on insurance takes effect
Emily Bazar, CHCF Center for Health Reporting | January 18, 2011
When Cherise Khaund went shopping for health insurance for herself and her two daughters, she had no clue that being a woman would cost her. But as the Walnut Creek resident scanned the premiums for her new Blue Shield of California plan, she saw that prices varied by two factors: age and gender. In one year’s time, she would pay $408 more than a man for the same plan. “I was so shocked. I thought only other countries were able to discriminate like that based on gender,” said Khaund, 37, of her March 2009 discovery. Still, she signed up. “I didn’t have a choice,” she said. Starting this month, a new state law prohibits health insurers in California from using gender as a factor in pricing individual policies.
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