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Economic Justice

Security and Financial Empowerment (SAFE) Act

Background

• The SAFE Act (S.1136/ H.R.2395) was introduced in the Senate in April 2007 by Sen. Patty Murray (D-WA) and in the House in May 2007 by Rep. Lucille Roybal-Allard (D-CA-34).
• In the Senate, S.1136 has 3 co-sponsors. Most recent action: 4/17/2007 Read twice and referred to the Committee on Finance.
• In the House, H.R. 2395 has 17 co-sponsors. Most recent action: 7/17/2007 Referred to House subcommittee. Status: Referred to the Subcommittee on Healthy Families and Communities.
• In the House H.R. 2395 was separated into 3 smaller bills in October 2007. This was done in hopes that the separate bills might get more support and move forward more quickly than they would as one large bill.
• H.R. 4014 - Insurance Non-Discrimination for Survivors Act - 61 co-sponsors. Most recent action: 3/25/2008 Referred to House Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises.
• H.R. 4015 - Job Protection for Survivors Act - 62 co-sponsors. Most recent action: 1/15/2008 Referred to House subcommittee on Health, Employment, Labor, and Pensions.

• H.R. 4016 - Unemployment Insurance for Survivors Act - 61 co-sponsors. Most recent action: 10/31/2007 Referred to the House Committee on Ways and Means.

What does the SAFE Act do?

• Prohibits insurers and employers who provide insurance from engaging in specified discriminatory practices with respect to individuals who are, have been ,or may be the subject of abuse or who have incurred or may incur abuse-related claims.Prohibits the insurer of a victim of domestic or sexual violence from denying, refusing to issue, canceling or adding to premium differential of an insurance policy or health benefit plan.
• Prohibits insurer from limiting or excluding insurance coverage for losses or denying a claim, except when permitted by state law.
• Prohibits the insurer or health carrier from terminating health coverage for a victim because the coverage was originally issued in the name of the abuser and the abuser has divorced, separated from, or lost custody of the victim.
• The insurer is not prohibited from declining to issue the benefits of life insurance to an applicant who is known to have committed an act of abuse against the proposed insured.Prohibits the use, disclosure, or transfer of information relating to victims by any person employed by or contracted with an insurer or health benefit plan.
• Entitles victims of domestic or sexual violence to take leave of up to 30 days to seek assistance from outside medical, psychological, and/or legal resources without penalty from their employer and prohibits employers from discriminating against the victims.

• Provides victims of domestic violence, dating violence, sexual assault, or stalking unemployment insurance for those who have been separated from their employment as a result of such violence (this includes being fired from the job or leaving the job due to the abuse).

Download this fact sheet for more information domestic violence in the workplace.

How this Discrimination Affects Victims of Domestic Violence

Apart from the obvious disadvantage of not receiving insurance money for healthcare expenses or damaged property, insurance discrimination further hurts victims of domestic violence.

• Insurance companies use medical records and past claims history to determine whether or not to issue coverage.  Victims will stop seeking appropriate and necessary medical treatment or counseling as they learn that insurers use information in their records to deny insurance.  Victims will also refrain from disclosing that their injuries were caused by domestic violence.
• Doctors and healthcare workers who have started identifying and documenting abuse may stop if it puts their patients at risk of losing their insurance.  This will significantly undermine the efforts made to create a network of sources of assistance for victims of domestic violence.

Addressing the Problem: Security and Financial Empowerment Act (SAFE)

SAFE is proposed federal legislation that would ensure that victims have the economic security that they need to escape violent relationships.  At this time both the Senate and House bills are still pending and it is unlikely that any new action will be taken before Congress adjourns in September.  In which case, the sponsors will have to re-introduce these bills with new numbers in the new Congress in 2009.  Below is detailed information on the SAFE act.

Insurance Discrimination

Since 1994, 41 states have adopted some form of legislation prohibiting insurance discrimination against victims of domestic violence.  However there is wide disparity of laws and regulations creating inconsistent protection throughout the country and leaving many victims unprotected.

• Download a list of states with Legislation to Prohibit Insurance Discrimination on the Basis of Domestic Violence.