New Law Could Open Genetic Testing Floodgates, But At What Cost?

Today the New York Times reported that Congress has passed a bill making it illegal for “health insurance companies [to use] genetic information to deny benefits or raise premiums for individual policies.”

While proponents of the bill are hailing its ultimate passage (President Bush has indicated he will sign the bill), it could have unintended consequences.  First, for some, ignorance is bliss. Many would rather not take a genetic test if it reveals information about an illness they would prefer to know nothing about. 

What about the private insurance industry, which is predicated on the idea that insurance will protect people against unknown risks?  Could genetic testing user in the age of universal health care?  Some believe the answer is yes.  Karen Pollitz, director of the Health Policy Institute told the New York Times:  “Ultimately unlocking all these genetic secrets will make the whole idea of private health insurance obsolete.”

David Hamilton who writes at Venture Beat, expanded on this topic last year saying: "[W]hat happens as personal genomics turns into a reality? One main consequence is that insurance companies suffer, because suddenly consumers will — for perhaps the first time ever — hold an information advantage over them. Say your own genome scan shows that you’re not predisposed to cancer, heart disease or diabetes — you might very easily opt for a low-cost, high-deductible healthcare plan that wouldn’t have to do much more than cover you in the case of an unexpected accident. By contrast, if you find you’re particularly likely to develop early-onset Alzheimer’s disease, as you enter middle age you might not only load up on health coverage, but also pick up a long-term care plan to ensure you’re not a burden to your family."

This is an interesting notion.  But will the upcoming genetic testing revolution impact decision-making in another way?  An Economist article suggests that high deductible health insurance accounts may be a means consumers can use to bypass the insurance industry altogether.  Will people use these plans to load up on insurance that will take care of them when they become ill?  Will they be affordable for most? 

Despite the new federal legislation, we are very far away from the golden age of genetic testing.  There are still many questions about whether the tests are accurate and effective.  (This is one reason some genetic testing firms are currently under investigation.) However, it’s very clear that we are moving ever closer to the age where people are going to have to make tough decisions about their health based on information some would rather not have.