Should companies be allowed to use your family health records to determine your coverage and rates?

Question

I was reading recently that insurance companies are now using family history to calculate rates and even deny coverage where they can perceive a loss or bad investment. I believe most corporate employees are protected from such scrutiny and must be allowed to join group policies except where pre-existing conditions allow the insurance company to opt out. But, self-employed or employees of say a small private school may not he able to obtain reasonably priced coverage because their Mom's dad had a heart attack, colon cancer, etc...

Answer 1

That is called underwriting, and is done. It is a good determination of future costs. I would assume the option would be to charge everyone the higher rates, so they are covered for the ones with health issues.

Of course merley tell them you are adopted and have no family history.

Answer 2

Are we talking health insurance, life insurance, car insurance, house insurance, or what?

I do think a company should be able to use your personal health records to determine how healthy you are, and how healthy your parents are - there is a corrolation, and it will lead to lower rates for more people, the healthier ones. Of course, if you're a less healthy person, you'll be paying higher rates.

The employers can always opt to pay the coverage, as it's fully tax deductible as a business expense. And if an employer won't pay, the employee can always look for a job elsewhere.

Or choose to live a healthier lifestyle.

Answer 3

I'm not sure if they "should" be allowed to do that but I'm afraid that's the way the insurance industry is headed. I was told I couldn't get renters coverage b/c I rented an apartment in a neighborhood the company rated as "dangerous"! Go figure, the most needed place for this particular insurance - and I was more than willing to pay considerably high premiums! - but no coverage allowed?!? The agent lady I talked with told me to move and come back to re-apply!

Answer 4

I agree with you, but it is being done now and has been for some time to insure you according to your familial history.

The way around that is to go nationalized health care. It will be an uphill fight because the health care sector is making a fortune in the United States compared to the rest of the world and of course they pay good money to the law makers to keep it that way, but if enough people demand it, the time will come when they have no choice.

Answer 5

YES. That is how insurance rates have always been determined. Insurance Companies use the law of large numbers to determine the probability of risk. For instance, on my father's side, both grandparents, my father, and his sister all developed diabetes after the age of 45. It is very likely that I too will develop diabetes after 45. On my mothers side, my grandmother (+ 4 of her siblings), 3 cousins, 3 uncles/aunts, and my mother have all had their gall bladders out. It is very likely that I will develope a gall bladder disease or gastroenteritis. I am a high risk and insurance carriers will charge me a higher rate because the likelyhood is greater for me and not for you.

That's the way insurance works. Remember that insurance is a pool. Everyone's money is in one pot and we all have to share it if there is a loss.

Answer 6

Hi,
Health coverage is not a right .., so to speak. This is an industry looking to make profits. A Medical Information Bureau does exist.., they will check just like a credit bureau would. Look into obtaining you MIB File.., Yahoo will certaintly have that info. Good Ludk!!

Answer 7

Asking about your family's medical history is standard procedure. Usually they will not do anything about it even if all your parents and siblings have died from cancer. I think maybe in extreme cases will they reject cases e.g. disease is hereditary.

Answer 8

If I'm not wrong, it's already allowed to do that. For a long while ago.