Life insurance companies will be prohibited from discriminating against people based on genetic testing under federal government moves designed to encourage greater use of predictive technology in preventive health.
The assistant treasurer, Stephen Jones, will announce on Wednesday that life insurers will be prohibited from using the results of predictive genetic tests in their underwriting decisions.
“This change will give Australians the confidence to undertake genetic testing without fear that it will affect their ability to access financial security through life insurance,” Jones said in comments provided ahead of the formal announcement.
“I have met with countless people affected by this issue and thank them for sharing their stories and helping to drive this important change.”
Genetic tests identify changes in genes, chromosomes and proteins in the body and can help confirm or rule out a suspected medical condition. It can be used for early diagnosis and treatment and in some cases can help prevent a disease. It can also help determine a person’s chance of developing or passing on a genetic disorder or disease, allowing early decisions to be made.
But along with its potential emotional impact, testing carried the risk of discrimination once the results were confirmed and recorded.
Currently, insurers are exempt from discrimination legislation in relation to genetic testing and applicants for insurance are required to disclose whether a genetic test has identified a predisposition to disease.
Under the change, that obligation will be removed – but illnesses that have been medically diagnosed as already present must still be disclosed according to the insurer’s requirements.
The government is concerned that people with family history or other indicators that suggest they may develop hereditary conditions and diseases such as cancer are reluctant to undergo potentially life-saving early tests because of the risk of being denied insurance.
Advocates for change, particularly from the health sector, have campaigned for a decade for the ban, which the government believes has overwhelming public support based on community consultation.
Australian Medical Association president Professor Steve Robson welcomed the change and offered “a huge and grateful congratulations” from doctors nationwide.
“We know that the fear of being denied insurance cover has been a major disincentive for Australians to undergo genetic testing when they need it,” Robson said.
to newsletter promotion
“Seeing this situation rectified is an enormous step forward for health care in this country. A situation where there was a large financial penalty for the potentially life-saving medical testing has now been rectified. This is fantastic news for Australians and for their health system.”
The life insurance industry also supports the move.
Council of Australian Life Insurers chief executive Christine Cupitt said it would be good for the industry as well as those looking for insurance.
“Australia’s life insurers have never wanted to do anything to discourage people from doing genetic testing and accessing the information they need to make informed choices about their health,” Cupitt said.
She said an industry standard was adopted in 2019 that governs how insurers use genetic testing and testing is now becoming more common and cheaper to access, helping people manage and sometimes avoid serious health conditions.
She welcomed the plan to review the ban every five years.
“It will be essential to ensure that the law keeps pace with advances in genomic science and the way genetic tests are used in the future,” she said.
