Capital OKs Tough Curbs on AIDS Bias by Insurers

The nation’s most comprehensive ordinance banning AIDS-related testing in determining health and life insurance premiums was given tentative but unanimous approval Tuesday by the District of Columbia City Council, which hailed the local measure as “a sweeping victory against discrimination.”

“There is a very strong human rights tradition in the District of Columbia, and that tradition was affirmed today. The insurance industry wanted to wash their hands of the AIDS problem, and I think a lot of people were appalled by that,” said Steve Smith, a Washington activist on issues involving acquired immune deficiency syndrome.

Industry executives, who had waged a $200,000 media campaign against the ordinance, called the vote “a dangerous precedent” and predicted premium rate increases of up to $2.50 per $1,000 of coverage for all insurance policyholders in the city.

“This bill is unfair to all other insurance applicants and rates are going to go up,” Russ Iuculano of the American Council of Life Insurance said.

Under the district’s charter, legislation must be approved by the City Council, the mayor and both houses of Congress. Mayor Marion Barry said that he will sign the bill, but it is certain to face stiff opposition from the insurance industry when it is given final consideration in the House and Senate next month.

In Effect by October

If approved, the measure could take effect before October, supporters said.

Similar measures have been approved by the state governments of California, Wisconsin and Florida, but the district’s ordinance is more encompassing.

It would impose penalties for denying coverage to or changing benefits of not only individuals who test positive for AIDS antibodies but also for those who refuse to take or to disclose the results of antibody tests.

Under current law, insurers may ask applicants to take physical examinations that can include blood tests for kidney, heart and liver disease.

The proposed legislation would bar insurers from using any related immunological tests, including those that measure the body’s ability to fight infection. And insurers would be prohibited from using such factors as gender and sexual orientation in predicting the likelihood of developing AIDS or related conditions.

Several penalties, ranging from daily fines of up to $2,500 per violation to revocation of a company’s license, are being considered as part of the legislation.