Insurers banned from jacking up premiums based on your genes
Australians will soon be able to access potentially life-saving genetic tests without fearing they will be made to pay exorbitant amounts for life insurance, as the government steps in to regulate how insurers handle this emerging medical field.
Assistant Treasurer Stephen Jones will announce a total ban on genetic discrimination in life insurance on Wednesday, clarifying that Australians who undergo genetic testing to detect cancer genes or tailor their medical treatments will never be obliged to share their results with insurers, and insurers will be prohibited from asking.
The life insurance industry has been allowed to ask for genetic screening results when issuing some policies.Credit: Bloomberg
Genetic testing is poised to play an increasingly important role in healthcare, given it can help medical practitioners prevent, diagnose, treat and monitor a range of inherited conditions, including predisposition to certain cancers and high cholesterol that can cause early heart attacks.
But advocates say many Australians have been deterred from getting genetic tests because they fear it could be used against them when they seek life insurance.
The life insurance industry imposed its own standards on the issue in July 2019, when companies agreed they would no longer use genetic tests for insurance applications below certain financial thresholds.
Data collected from six months of 2021 found that 9 per cent of cases involving genetic testing were adversely affected by their results when they sought cover above the threshold, while 13 per cent received a lower premium than they otherwise would have. About three-quarters were not affected.
Jones said he decided on a total ban after the government’s consultation on the issue received more than 1000 submissions, 97 per cent of which supported a total ban.
“I have met with countless people affected by this issue and thank them for sharing their stories and helping to drive this important change. The engagement from the community on this issue speaks to the importance of this announcement for so many Australians,” he said.
“This change will give Australians the confidence to undertake genetic testing without fear it will impact their ability to access financial security through life insurance.”
The changes will require new laws to pass parliament. While insurers will be banned from asking for genetic test results, people will be able to provide their results if they choose. The ban will be reviewed every five years in case there are unintended consequences.
The life insurance industry welcomed the government’s intervention, having operated for years without certainty.
Christine Cupitt, chief executive of the Council of Australian Life Insurers, said insurers had not wanted to discourage people from making informed choices about their health. She said a lot had changed since the industry tried to create its own standards in 2019.
“Five years on, genetic testing is becoming more common in our community, cheaper to access and increasingly helping people manage or even avoid hereditary conditions. Now is the time for strict government regulation,” she said.
“[We] fully support this announcement. It’s good for working Australians, it’s good for government, and it’s good for industry too.”
Dr Jane Tiller, an adviser in public health genomics at Monash University who has been advocating for a ban, said the changes would safeguard the future of genomic medicine, precision health and medical research in Australia.
“This policy reform will provide certainty to consumers and allow Australians to make genetic testing decisions based on their health rather than fears of financial discrimination,” he said.
Australian Medical Association president Steve Robson said it was “fantastic news” for Australians, who would now be able to access potentially life-saving medical testing.
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