Will the Governor Support or Oppose Gender Discrimination in Health Insurance?

Two bills that address gender discrimination in health coverage - AB 119 (Jones) and AB 98 (De La Torre) - are on their way to the Governor’s desk. You can view the Senate Rules floor analyses for AB 98 and AB 119, which include lists of supporters and opponents.

Below is an opinion piece from Beth McGovern, Legislative Director for the California Commission on the Status of Women, which sponsored AB 98.

From Beth McGovern

Discrimination against women is alive and well in the health insurance industry. While discrimination is forbidden by law in most situations, the state openly permits gender discrimination in the sale of health insurance policies.

We’ve been hearing from President Obama about the inequities in our country’s current health care system and the need for reform. In California, one of the blatant inequities allowed by state law is discrimination against women. Fortunately, there are two bills this year that would eliminate gender discrimination in health care coverage. AB 119 (Jones) and AB 98 (De La Torre) are both needed to truly eliminate discrimination and achieve gender equity in health care insurance.

AB 119 (Jones)

AB 119 would prohibit insurers from charging different premiums to men and women for the same health care coverage. Currently, women are charged up to 39% more for the same coverage. AB 119 would close the gap in the law that allows this unfair gender discrimination in health insurance premiums.

AB 98 (De La Torre)

AB 98 would require all insurance policies to provide coverage for maternity care services, including prenatal care, labor and delivery services and postpartum care. Maternity care is basic and preventive health care for women. This bill would ensure that maternity costs are spread across the pool of all individuals who purchase insurance just like costs for other basic health care.

Gender discrimination in health insurance pricing has been banned for more than thirty years in the provision of group health benefits provided by employers but different rules apply to the individual market where gender discrimination is still permitted. Similarly, group health plans are required to provide coverage for maternity services but insurers are free to market individual policies without maternity coverage. This creates an enormous disadvantage for women who need to purchase their own insurance.

The disproportionate cost for women to obtain health insurance coverage creates significant barriers in obtaining needed health care. This economic burden on women is magnified by the fact that women on average make only 78 percent of men’s wages and therefore have greater difficulty paying expensive health care costs. The higher cost of health insurance often forces women to do without coverage and forego needed health care or turn to publicly funded programs for medical services.

When women are priced out of the health insurance market, women, their families and society are harmed. AB 98 and AB 119 would significantly improve women’s access to vital health care. Now is the time for California to end the sale of health insurance policies that discriminate against women.