Medical Malpractice Lawyers in New York

We know that insurance companies do not make their money by paying claims to their policy holders. There is a deep opposition in the interests of the company and those of the insured. Insurance companies make their money by investing dollars paid to them as premiums.

Their adjusters are trained to be courteous and pleasant, but to make low-ball offers – after an auto accident, for instance. They will make that offer fairly quickly in hopes that you’ll accept it and end the matter. That way they can invest the money they would otherwise have paid you to cover the full cost of your medical bills or vehicle damage. Now their profit margin looks that much healthier and their shareholders are happy.

None of this is illegal – it’s just the way a business has to operate to make a profit – that is, keep costs low and income high.

On the other side of things are policy holders who may have a totaled vehicle and long-term medical bills, and insufficient money to deal with it.

The Genetic Information Nondiscrimination Act

This month, Congress is passing a bill which would prohibit health insurance companies from denying benefits or raising premiums based on a policy holder’s genetic information. When medical research is done on diseases, it is often found that people of a certain heritage or background are more likely to suffer that disease. Examples are that caucasians are said to be more likely to have skin cancer, and people of Hawaiian or Mexican descent are said to be more likely to become diabetic.

Insurance companies study such statistics and try to minimize future costs by minimizing their coverage for those people and those health conditions.

The Genetic Information Nondiscrimination Act is designed to prevent such discrimination based on genetic tests, although it does not prohibit companies from urging patients to take those tests. The goal is not to deny coverage but to help find the best and least costly therapy.

This Act applies also to employers who use genetic data in hiring, firing, or compensation decisions. It sets fines for such behavior, going as high as $300,000 per violation. However, it does not address discrimination by life insurers or long-term care insurers.

The Act is not yet signed by President Bush, although it is believed that he will sign it. It would not take effect until after 18 months from that date.

If you feel that you have been denied coverage or had your insurance premium raised because of what is considered to be your racial profile, please call or email us for a free consultation.