February 23, 2006 | Posted By Diane Pfadenhauer | print this article

Light Up and Pay More for Health Insurance

According to USA Today, employers are charging smokers more for their health insurance. 
"Meijer, Gannett, American Financial, Pepsi and General Mills are among the companies already charging or planning to charge smokers higher premiums. The amounts range from about $20 to $50 a month. "
And, according to Hewitt Associates, the trend has become so popular that it will begin tracking it in its annual benefits survey!  Some interesting smoking-related statistics:
  • a general benefits survey of 950 U.S.-based employers last year showed that at least 41% used some form of financial incentives or penalties in their health care plans.
  • at least 8% to 10% of the businesses probably aimed some of the incentives or penalties at smokers.
  • The Centers for Disease Control and Prevention estimates $92 billion in lost wages annually in the United States from smokers who die prematurely. In addition, the economic cost of smoking includes $75.5 billion per year in direct health care costs.
Hopefully, employers will be putting some of that money in to helping their employees adopt more healthy lifestyles.  I'm not a smoker, but most I know that have quit or tried to find the addiction very difficult to overcome.