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
Not very bright if you continue to smoke.
That's about it.
iF YOU had a cigarette in 1986....And then died in (NC or Cancer) 2012, the Healthcare System blames it on smoking or second hand smoke...
They are using excuses for their ineptness in doing their jobs, correctly..Lack of Education.
Ca Ca.....Smokers have paid Billions in taxes into the Governmental Systems for years...
And then AGs, Governmental, and Individuals sued Tobacco Companies for Billions more...
Monies were to go for SMOKER'S Health problems..And cessation,prevention programs...
ASK YOUR GOVERNMENT, WHERE THAT MONEY IS AT ????
YOU REALLY AREN'T VERY BRIGHT, ARE YOU ?
I can't wait untill all the young people who normally would not buy health insurance, get their first bill for the mandatory requirement.
I do solemnly swear (or affirm) that I will faithfully execute the office of President of the United States, and will to the best of my ability, preserve, protect and defend the Constitution of the United States."
I think are Commander and Chief needs to live up to his word.
These is not what I would call a free Country with the right to pursue happiness.
To bad his health care only protects the Pharmaceutical Companies.
Soda pop drinkers are next. then overweight people. You caused your diabetes etc.
The list will not end. Commen sense said we should not let the government have our healthcare, but then again we no longer have commen sense. After all, we just tossed a 5 year old girl out of school for talking about her Hello Kitty bubble gun. We are doomed.
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 stock market ended the holiday-shortened week on a mixed note as the Dow Jones Industrial Average shed 0.1%, while the S&P 500 added 0.1% with seven sectors posting gains.
Equity indices faced an uphill climb from the opening bell after disappointing quarterly results from Google (GOOG 536.10, -20.44) and IBM (IBM 190.04, -6.36) weighed on the early sentiment. Google reported earnings $0.15 below the Capital IQ consensus estimate on revenue of $15.42 ... More
More Market News
Serious issues like drought and the deterioration of the developed world spell opportunity for this industry leader.
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'