Should Smokers Pay Extra For Health Insurance?

Should smokers pay extra for health insurance?

A majority of Americans wouldn’t complain.

According to a recent Wall Street Journal/Harris Interactive poll, 63% of those surveyed think smokers should pay more for their health insurance than non-smokers. This is an increase from 2003, when only 58% felt that way.

Americans might want tobacco-users to pay different premiums, deductibles and co-pays, but they don’t want to leave them dangling: 71% support financial incentives for those who join stop-smoking programs.

It’s an idea that’s getting pretty popular with employers, too.

More Smokers Slapped With Surcharges

It used to only be smokers buying individual health insurance policies had to worry about extra costs.

Not anymore.

More employers are tacking surcharges onto tobacco-using workers’ monthly health premiums. They’re hoping the move will be the motivation smokers need to quit – and lower their companies’ overall healthcare costs at the same time.

According to the US Centers of Disease Control estimates, smokers rack up $167 billion in healthcare expenses and losses in productivity annually.

Employers faced with the added costs have traditionally spread the hikes equally among all employees, smokers and non-smokers alike.

But as expenses continue to steeply rise, employers are now seeking a proactive approach. And it’s a growing trend; 7% of companies now charge smokers more for their health insurance – up 2% from 2003. 

Major business names like PepsiCo Inc. and Gannett Co. are leading the way. Smokers employed by these companies have seen their monthly insurance premiums go up $25 and $50, respectively.

And it’s not just companies taking anti-smoking measures. Georgia charges state health plan members an extra $40 a month if they smoke. And they’re serious: if plan members are caught lying about their tobacco use, they can lose their coverage for an entire year.

Kicking The Habit

Most employers who’ve added smoking surcharges are willing to drop them once workers successfully complete a smoking cessation program, and remain tobacco-free. It’s a situation that benefits the employer’s wallet, and benefits the long-term health of employees.

Whether it’s the rising prices of cigarettes and health premiums or a heightened public focus on the health risks, more smokers are giving up the habit. The bad news: quitting smoking is hard. The good news: it can be done. Today more adults have succeeded in quitting than there are current smokers.