An application by the Investment and Financial Services Association on genetic testing for insurance purposes was opposed by major medical organisations and the Australian Competition and Consumer Commission in its draft decision issued in June, ACCC Chairman, Professor Allan Fels, said today.
"The ACCC received submissions from the following on the issue: the Australian Medical Association, the Australian Health Ethics Committee; the Human Genetic Society of Australasia; and the Commonwealth Department of Health and Aged Care.
"All opposed the granting of authorisation. At a July public hearing after the draft decision's release the AMA argued that IFSA should develop its policy with input from both health professionals and other interested parties. It also said that it would be detrimental to the public for insurance companies to be able to demand or coerce applicants into undertaking genetic testing or reveal existing genetic tests for any reason.
"The ACCC has asked for further written submissions from all interested parties. The AMA response has not been yet received. Its latest statements appears to represent a change in from its initial submission.
"IFSA applied to the ACCC for approval of its draft genetic testing policy. The policy raised two main issues: whether to allow life insurance companies access to previously conducted genetic tests and also to prevent IFSA members from requiring or coercing applicants to undergo genetic testing.
"The ACCC has proposed the rejection of the application on the grounds that the public benefits of the policy do not outweigh its anti-competitive detriment.
"The ACCC recognised in its draft decision on the application that life insurance companies can already access existing genetic test results under insurance contract law. This can be done in much the same way as questions are asked of an insurance applicant about health history, whether he or she smokes, drinks alcohol or takes part in 'high risk' sports.
"The ACCC's decision on this aspect of the application will not impact on this issue as the law will not change. Some questions recently raised about genetic testing may be more appropriately dealt with by legislation.
"Arguing on behalf of its application, IFSA said that if companies were not prohibited from demanding genetic tests there was a risk of a 'free-for-all', to the public detriment. The ACCC was not satisfied that companies were likely to demand costly tests whose usefulness for underwriting purposes may be limited.
"Evidence to the ACCC about insurance companies' behaviour regarding access to other sensitive health and related information, smoking and drinking habits etc, has not indicated a threat to the community of the companies being irresponsible. The ACCC accepts IFSA's evidence on confidentiality that to date its members have treated such information responsibly".