The Trudeau government was defeated Wednesday in its attempt to remove penalties for genetic discrimination and regulations around forbidding employers from genetic testing.
Liberal MP Randy Boissonnault’s bill, backed by lobbyists from the Canadian Life and Health Insurer’s Association (CLHA), was defeated by NDP and Conservative parliamentarians as well as many Liberal backbenchers.
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The CLHA declined an interview with
Insurance Business but said in a written statement that life and health insurers didn’t want genetic testing of policyholders, but the current law prohibiting genetic testing was driving premiums up.
“The life and health insurance industry is extremely disappointed that Bill S-201 was passed today in the House of Commons without significant amendment,” the statement said.
The CLHA also said it was “considering its options.”
“We also heard the concerns expressed by Canadians about the use of genetic testing information and that is why we changed the Code to also commit to not asking for genetic testing information for life insurance applications below $250,000,” it said. “This ensures the middle class can continue to afford the protection they need.”
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The federal government attempted and failed to make its amendments to Bill S-201 and the legislation, including penalties and restrictions around the use of genetic tests, passed 220 to 60.
The bill also prevents the sharing of genetic tests without written consent.
Liberal MPs who voted against Trudeau in the free vote said the amendments the insurance industry was lobbying for would have gutted the bill.
The CLHA said the bill, which carries a maximum of a $1 million fine or five years in jail should the proposed law be violated, makes insurance more expensive for Canadians, citing actuarial analysis.
“According to the Canadian Institute of Actuaries, Bill S-201 would lead to price increases of 30% for men and 50% for women for term life insurance. This would put the cost of life and health insurance out of reach for many lower-income and middle-class Canadians. In reality, Bill S-201 will result in fewer Canadians with insurance than would otherwise have it,” reads the CLHA’s
A Commitment to Canadians Keeping Life and Health Insurance Fair and Affordable release.
Part of Trudeau’s Liberals and the CLHA’s lobbyists’ argument is that the legislation infringes on provinces’ jurisdiction in regulating insurance.
During the federal election, Trudeau advocated in favour of the bill his government is now trying to rework.
Opponents of the changes say genetic screening could become a method of denying coverage and that Canada is one of the few countries without strong genetic anti-discrimination laws.
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