The Genetic Insurance Game

TL;DR

Genetic Information Non-Discrimination Act makes it illegal to use genetic information in health insurance and workplace decisions, but other insurance types are still at risk.

Transcript

two years ago i had this chance to stand in the oval office as the president signed the genetic information non-discrimination act this will basically and it does now make illegal the use of your genetic information in health insurance decisions and in the workplace which were the major concerns that people had so that can no longer be done that's ... Read More

Key Insights

• 💁 The Genetic Information Non-Discrimination Act only protects against discrimination in health insurance and workplace decisions, leaving other types of insurance vulnerable to genetic information-based discrimination.
• 🥺 Disclosing genetic information during insurance applications can lead to higher premiums or exclusions in life insurance, long-term care insurance, and disability insurance.
• 💁 Some individuals may choose to purchase insurance without disclosing their genetic information, but this can have consequences in the future.
• 👾 Insurance companies are concerned about adverse selection, wherein individuals with inside information may game the system and obtain policies under false pretenses.

Questions & Answers

Q: Does the Genetic Information Non-Discrimination Act protect against discrimination in all types of insurance?

No, the Act only addresses health insurance and workplace decisions. Life insurance, long-term care, and disability insurance can still use genetic information to set premiums or deny coverage.

Q: Are individuals required to disclose their genetic information when purchasing insurance?

While it may vary by policy, most insurance applications require applicants to disclose all relevant information, including genetic information. Failure to disclose can have consequences.

Q: Can someone buy insurance without disclosing their genetic information and then drop the policy later?

While it is not recommended, some individuals may choose to purchase insurance without disclosing their genetic information. However, this can be seen as adverse selection and may have consequences in the future.

Q: Has there been a noticeable increase in the purchase of long-term care insurance by individuals who learn they are at high risk for certain conditions?

According to a study, there was a five-fold increase in the purchase of long-term care insurance for individuals who tested positive for a specific genetic marker associated with higher risk compared to those who tested negative.

Summary & Key Takeaways

• The Genetic Information Non-Discrimination Act outlaws the use of genetic information in health insurance and workplace decisions.

• However, life insurance, long-term care, and disability insurance can still use genetic information to set high premiums or exclude individuals.

• It is essential for people to consider the potential consequences of disclosing their genetic information when buying insurance policies.