A bill filed by Newton State Rep. Ruth Balser and State Sen, Jason Lewis to prevent gender discrimination in disability insurance was signed into law Thursday by Governor Charlie Baker.
In the state-regulated individual insurance market, women pay more than men for the same disability insurance benefits. Filings with the Division of Insurance show that women in Massachusetts pay more for the same disability insurance benefits than men in the same occupation class. This is true across the board, regardless of the insurance company, the age of the purchaser, the occupation class, the duration of benefits, whether long-term or short-term disability insurance. In every case, women pay more. On average, women pay 23.5% more than men. However, sometimes it is even more than that. Under some policies, women pay 61% more than men.
The bill prohibits insurers from charging higher disability insurance premiums based solely on gender, race, religion, or national origin. Currently, state-regulated disability insurance is classified by sex, and filings at the Division of Insurance show different premiums for men and women with the same job classification. For example, male nurses pay less than female nurses for the same disability policy. The new law will address this disparity.
“Women’s rights groups have been working to eliminate gender discrimination in insurance since the 1970s when Massachusetts adopted the Equal Rights amendment to the state constitution. Slowly and incrementally, Massachusetts has eliminated gender disparities in most insurance products including automobile, homeowners, health, and annuities,” Balser, the lead House sponsor of the bill, said in a statement “Today we have eliminated the unfair practice of charging women more than men for the same disability protection. Many thanks to the large coalition of groups led by the Mass Commission on the Status of Women, the legislature, and the Governor for insisting that Massachusetts continues to lead when it comes to ensuring equality for all.”
The reason for gender difference in disability premium historically has come down to experience, essentially—historically, insurance companies found that women tend to file more disability claims (women are more likely than men to see a doctor when something is wrong – men just die earlier) and are disabled for a longer period of time, so they are charged higher premiums for coverage.
So, the new Massachusetts gender equity law should be extended to apply to life insurance. Men should not be charged more at the same age as a woman even though historically men die younger.
Just sayin.
…and the same equity should apply to automobile insurance even though, historically, men on average are higher risks, thus more costly to insurers.
Again, just sayin.
It could also be that short-term disability payments are the only “paid” maternity leave most women get.
But the quote said it was true across all ages, so this is probably only part of the story.
Congratulations Representative Balser!
Ruth has worked on this bill for years. Fantastic that it has become law. This is another step forward toward fairness and equality for women.
What about fairness and equality for men who pay more than women for life insurance and automobile insurance?
@Jim Epstein – it’s illegal to charge different auto insurance rates for men and women in MA.
Thank you, Rep. Balser!
Meredith, what about life insurance?
That I don’t know since I’ve never bought any beyond what I get from my job – you can look it up.