What demographic factors can insurance companies not use to determine premiums for health insurance in Indiana?

Insurance companies in Indiana, as well as in many other jurisdictions, are prohibited from using certain demographic factors to determine premiums for health insurance in order to prevent discrimination and ensure fairness in the insurance market. Specifically, using gender and race as criteria for premium calculations is not allowed.

This is because these factors can lead to systemic discrimination and inequality, which go against the principles of equitable treatment in insurance underwriting. Historically, using gender and race has contributed to disparities in access to healthcare and unfair pricing, prompting legal regulations to protect individuals from being unfairly charged based on these immutable characteristics.

In contrast, age, income, occupation, education, marital status, and number of dependents might influence premiums for different valid reasons relating to the risk assessment of health needs and related costs. For instance, age may be indicative of potential health risks, while income can correlate with ability to pay. Thus, the prohibition against using gender and race as determinants helps to create a more equitable healthcare system.