Insurers willing to limit scope of genetic testing

Applications of less than $250K not admissible

OTTAWA • In a bid to soften proposed federal legislation banning genetic discrimination, the nation’s life insurance industry said Tuesday it will ignore genetic test results of individuals applying for $250,000 or less of coverage.

But the statement, unveiled by a senior industry executive testifying before a Commons justice committee review of Bill S-201, was met with an angry denunciation from Liberal Chris Bittle. The St. Catharines, Ont., MP charged that the industry has known for years that demanding prospective clients disclose any genetic test results has caused many people to forego testing for themselves and their sick children and the opportunity for potential health benefits.

Bittle likened move to the eleventh-hour tactics of Big Tobacco.

“You’ve known of this for years, you’ve know about the consequences that it’s having on people’s health in Canada and yet you wait until we’re on the verge of passing a bill? That’s inexcusable, sir,” he said to Stephen Frank, senior vice-president of policy for the Canadian Life and Health Insurance Association.

“This reminds me of individuals coming before (the U.S.) Congress years ago from the tobacco industry,” Bittle said. “Why should we believe you now, on the verge of passing this legislation to protect Canadians, that you are going to do right by Canadians and work for their health and best interest?”

Moments earlier, Frank said the industry “recently initiated discussions” with the provinces, which regulate insurers, to “commit to not asking for, or using, any test results” for life insurance policies of up to $250,000.

He said the concession would cover more than 85 per cent of life insurance applications, “and will address concerns around this issue for the large majority of Canadians.” He said the association hopes to have the plan in place within weeks.

Insurers strongly opposed the bill, arguing they have a legitimate right to material information that helps them accurately calculate financial risk. They say one of the greatest threats facing life insurers is “anti-selection,” which occurs when a highrisk group, such as smokers for example, purchase insurance at the same price as non-smokers. The imbalance, they say, results in higher payouts and penalizes everyone with higher premiums.

Experts from the Canadian Institute of Actuaries backed up that contention Tuesday, telling the committee that life insurance premiums are predicted to climb 30 per cent for men and 50 per cent for women if the bill becomes law.

“Everybody wants appropriate use of genetic information,” Frank said.

Bill S-201 is a private members bill drafted by Liberal Sen. James Cowan. It won Senate support earlier this year.

If adopted, the law would bring Canada in line with all other Group of Seven nations and would be backed with criminal sanctions and maximum fines of $300,000 and $1 million, depending on the severity of the offence.