Will Obamacare force more smokers to quit?
The Affordable Care Act will impose large insurance surcharges on tobacco users. But people in smoking-cessation programs will get a break.
Obamacare bans higher premiums or the denial of health coverage because of pre-existing conditions. But one group will still find themselves penalized: smokers.
The new measures in the Affordable Care Act, which goes into effect next January, would allow health insurance companies to charge tobacco users up to 50% more for individual policies. And the costs of that rate hike would come entirely out of smokers’ pockets.
A recent Associated Press report notes those surcharges, nearly $4,250 a year on top of premiums for a 55-year-old smoker and close to $5,100 for a 60-year-old, could impose a heavy financial burden on individuals with a tobacco habit "at a time in life when smoking-related illnesses tend to emerge."
The ACA penalties could give added incentive to companies looking to sidestep smokers as potential employees.
Smoker protection laws already exist in 29 states and the District of Columbia, but that might be changing. Oklahoma, for example, is considering a bill that would repeal those laws. "These are the kinds of protections you’d think we have for race and gender, not smokers," State Sen. David Holt told KFOR-TV. "Just as a smoker has made a choice, employers ought to be able to make choices too."
Nearly 20% of people in the United States smoke. The Centers for Disease Control and Prevention says smoking also kills more than 440,000 people in the U.S. annually while costing the economy more than $193 billion each year in lost productivity and health care expenditures. And it says secondhand smoke costs -- from healthcare expenditures as well as illness and premature death -- amount to another $10 billion.
Analysts say those statistics, along with the ACA penalties, are causing the insurance industry to look even closer at smokers.
"If you are an insurer and there is a group of smokers you don't want in your pool, the ones you really don't want are the ones who have been smoking for 20 or 30 years," Karen Pollitz, insurance market expert with the Kaiser Family Foundation, told AP. "You would have the flexibility to discourage them."
But there is optimism the ACA measures could also help more smokers kick the habit. The CDC says more than two-thirds of all smokers want to quit completely. And the American Lung Association notes all new private insurance plans under the ACA must cover treatments to help smokers quit smoking.
And as the Washington Post’s Wonkblog points out,, ACA wouldn’t allow insurers to apply the full penalty against a smoker enrolled in a quit-smoking program.
"We don't want to create barriers for people to get health care coverage," California state Assemblyman Richard Pan told AP. "We want people who are smoking to get smoking cessation treatment.”
More on moneyNOW
wonder when they will allow those who are on public assistance to get cigarettes on food stamps...?
seems pretty lame coming from a former smoker himself, isnt it always the ones who had the bad habits themselves to come up with the most unfair rules and regulations?????? So do you think this will cause people to stop smoking (point is most will increase the amount smoked due to stress.....)since when does the government feel they have control over ones health and well being? You can own youre own home , but you never truly own it(ty uncle sam ) now you want our bodies too? Why cant someone in the whitehouse figure a way to cure diseased , make the usa a nice place to live, instead of making up these rediculous rules and regulations( dont you think the insurance companies have made enough money)????????????????????? A bear can **** in the woods , but americans (home of the free)??????????????
Stop voting for these president who dash deadlines, make up laws and rules as they go........We The People (need a president who actually gives a ****) and you wonder why people voted yes to making marju****gal ......................................Ty Mr.president......................I VOTE FOR CLINTON
The death panels have started, fat people your next, then the drinkers.
I want to be in line early, for the barcode tattoo on my arm....then they can just scan me and say Oh he is ok, don't smoke , don't drink and don't own a gun.....
Oh wait they did that 70 years ago, didn't work out well for them.
Excellent family genes, exercised regularly whole life, eat very healthy, sleep very well, don't drink, ideal BMI, etc. I smoke and I'll out live 95% of the population.
Being a smoker (by choice) I'm perfectly fine with paying more for coverage, HOWVER, so should those overweight, non-exercising, non-financially responsible (self-induced stress), habitual prescription medication users, alcoholics, etc., should pay more as well. Yeah I know, life's not fair, too bad so sad for me. :-)
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
[BRIEFING.COM] The major averages ended the midweek session with slim gains after showing some intraday volatility in reaction to the release of the latest policy directive from the Federal Open Market Committee. The S&P 500 added 0.1%, while the relative strength among small caps sent the Russell 2000 higher by 0.3%.
Equities spent the first half of the session near their flat lines as participants stuck to the sidelines ahead of the FOMC statement, which conveyed no changes to the ... More
More Market News
Fed keeps important 'considerable time' language in reference to short-term interest rates, but dissents and dots leave doubts.
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'