The Australian government has announced a landmark ban preventing life insurers from using genetic test results to deny coverage or increase premiums.
The reform, which applies to life insurance, income protection and total and permanent disability insurance, has the purpose of eliminating genetic discrimination in the insurance industry and providing Australians with confidence in undertaking genetic testing without fear of financial repercussions.
Nationwide consultation
The government’s call follows a national consultation that saw more than 1,000 submissions, with 97% in favour of a total ban.
The practice of using genetic test results to assess risk and adjust insurance coverage has been a growing concern, as many Australians tended to avoid tests that could identify life-threatening conditions for fear it could impact their eligibility for insurance.
The new legislation is intended to align Australia with international standards, such as in Canada and the UK, where genetic testing discrimination has already been outlawed.
Public health experts, including Dr Jane Tiller, a long-time advocate for the ban, underscored that the fear of insurance penalties deterred people from participating in genomic research or undergoing tests for genetic conditions like BRCA-related breast cancer risk.
While insurers will still assess risk based on personal medical history and family health background, the new protections will ensure that genetic testing results are excluded from these calculations.
Industry-supported ban
Industry leaders have supported the ban, with the Financial Services Council (FSC) having already implemented a self-regulated moratorium in 2019, restricting the use of genetic tests for policies up to A$500,000.
The new ban provides a stronger, legally binding framework.
The legislation may prove life-saving, allowing consumers to undergo genetic testing using preventative health products like those brought to market by Genetic Technologies Limited (ASX:GTG, NASDAQ:GENE, OTC:GNTLF) with confidence.