National Women's Law Center

For Immediate Release: September 23, 2008
Contact: Adrienne Ammerman or Ranit Schmelzer, 202-588-5180

NOWHERE TO TURN
New Research Shows the Individual Insurance Market Fails Women

(Washington, DC) New research released today by the National Women’s Law Center (NWLC) shows that the individual insurance market, where individuals purchase health plans directly from insurance companies, fails women.

NWLC’s report: Nowhere to Turn: How the Individual Health Insurance Market Fails Women (available here: http://action.nwlc.org/insurance) includes both national and state-by-state analyses of the individual insurance market. Extensive research found that insurance companies can refuse to sell women coverage due to any health history, and often charge women drastically higher premiums than men. In addition, the coverage is frequently both exorbitant in cost and limited in scope – often failing to cover women’s specific needs – such as maternity care.

Today, the Senate Finance Committee and the House Ways and Means Health Subcommittee will hold hearings to consider the need for insurance market reform as part of health reform. This report identifies the urgent need to address the unfair treatment of women in the individual insurance market, and the importance of addressing these issues as part of meaningful health reform that will ensure guaranteed access to affordable, quality, comprehensive health care for all women and their families.

Currently, slightly more than 6.5 million, or 7 percent, women with health insurance are covered under the individual market, where they purchase health plans directly from insurance companies rather than as part of a group plan. Recent trends, as well as several health reform proposals, indicate the potential for an expanded role for the individual insurance market. For example, some reform proposals would provide tax credits for people to purchase health insurance in the individual market. Under proposals such as these, increasing numbers of women could be forced into a health care market where the cards are stacked against them.

“Too many women face enormous obstacles obtaining comprehensive, affordable health coverage in the individual market - simply because they are women,” states Marcia D. Greenberger, Co-President of the National Women’s Law Center.

Key findings outlined in Nowhere to Turn include:

Insurance companies can reject women applicants for health coverage for a variety of reasons often unique to women. For example, it is still legal in 9 states and the District of Columbia for insurers to reject applicants who are survivors of domestic violence. Insurers can also reject women for coverage simply for having previously had a cesarean section.
It is difficult and costly for women to find health insurance that covers pregnancy-related care. The majority of health insurance plans available to women in the individual market do not cover pregnancy. A limited number of insurers sell separate maternity coverage for an additional fee known as a ‘rider,’ but this supplemental coverage is often prohibitively expensive and limited in scope. Maternity riders in Kansas and New Hampshire, for example, cost upwards of $1,100 per month.
Women often face higher premiums than men. Under a practice known as gender rating, insurance companies are permitted in most states to charge men and women different rates. This practice is costly, and often results in wide variation in rates charged women and men. NWLC research found that, among insurers who gender rate, insurers charge 25 year-old women up to 45 percent more than 25 year-old men; and 40 year-old women are charged up to 48 percent more than 40-year-old men for the same health coverage. One insurer in Missouri charges 40 year-old women 140 percent more than men of the same age.
Other problems in the individual insurance market apply to both men and women, but have a far greater adverse impact on women. Insurance companies also engage in premium rating practices that, while not applied solely to women, compound the affordability issues caused by gender rating that women face – including setting premiums that are based on age and health status.

Any health reform proposal that relies upon the individual market as a mechanism to expand coverage must squarely address the challenges that women face in the individual market. Failure to do so will leave many women either uninsured or with unaffordable coverage that does not meet their needs.

“According to a recent poll, a strong majority of women – 84 percent – say that it’s extremely or very important for Congress and the next administration to guarantee access to quality, affordable, comprehensive health care,” Greenberger states. “The National Women’s Law Center is here to make sure that the government is listening.”

NWLC is at the forefront of the fight for progressive health care reform that addresses barriers to women’s health care access. This report is part of our project, Reform Matters: Making Real Progress for Women and Health Care (http://www.nwlc.org/reformmatters), which encourages women to advocate for reform that ensures access to affordable, comprehensive health care.

To interview Marcia D. Greenberger, or for more about the National Women’s Law Center, contact Adrienne Ammerman at aammerman@nwlc.org or at 202-588-5180, or visit www.nwlc.org.

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