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Case
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Reference no. HKS0730.0
Published by: Harvard Kennedy School
Published in: 1987
Length: 8 pages

Abstract

In December 1986, Massachusetts Commissioner of Insurance Peter Hiam ordered life and health insurance companies operating in the state to stop testing insurance applicants' blood for antibodies to the AIDS virus. Hiam expressed concern that the tests were not accurate detectors of antibodies and that the presence of antibodies did not mean an individual would develop AIDS. Over time Hiam softened his opposition somewhat, but continued to oppose testing out of a concern that the results would not remain confidential, exposing applicants to discrimination beyond the denial of insurance coverage. For their part, insurers protested that Hiam's stand jeopardized the insurance industry's financial health as well as the millions of state policyholders whose interests he was supposed to protect.

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Abstract

In December 1986, Massachusetts Commissioner of Insurance Peter Hiam ordered life and health insurance companies operating in the state to stop testing insurance applicants' blood for antibodies to the AIDS virus. Hiam expressed concern that the tests were not accurate detectors of antibodies and that the presence of antibodies did not mean an individual would develop AIDS. Over time Hiam softened his opposition somewhat, but continued to oppose testing out of a concern that the results would not remain confidential, exposing applicants to discrimination beyond the denial of insurance coverage. For their part, insurers protested that Hiam's stand jeopardized the insurance industry's financial health as well as the millions of state policyholders whose interests he was supposed to protect.

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