The Obama administration released information to insurance companies recently, notifying them that a computer system glitch will limit the penalties that they may charge smokers. Smokers who are buying private insurance under Obama’s health care law were expecting premiums to be unaffordable, due to tobacco-use penalties. However, this system glitch limits these penalties. The government reports that they will try to fix the problem for next year. Therefore, starting in 2014, the law will require insurance companies to accept all applicants- regardless of pre-existing medical problems. However, it does allow the insurance companies to charge smokers up to 50 percent higher premiums, a way for insurers to ward off bad risks and expensive health care costs. Whenever the law is enacted correctly, costs are expected to be up to three times more expensive for older smokers as well- as their health care costs will likely be more expensive than younger smokers. This is also done to encourage younger adults to sign up for health insurance, and encourage healthy habits. Alternatively, workers covered through job-based health plans will be able to avoid these high tobacco penalties by joining smoking cessation programs. This is because employer plans operate under different rules.
First of all, it is ridiculous that our government made such a simple glitch and how much of an economic effect this will have this year on insurance premiums. No one caught this? Anyways, about the tobacco premiums… I do agree with higher premiums for smokers and other tobacco users. Overall, insurance companies charge everyone high premiums to cover themselves because some people’s health care costs are higher than what they pay in that year. This means, I have to pay high prices for insurance and never really use it because I am healthy. Finally, insurance companies are charging the right people- the ones who are causing the high health care costs. This will either cause people to reconsider their health or people will be endure the high penalties for their bad habits. I think the insurance companies and government should go even further with this and charge people for such things as obesity, drug usage, alcohol abuse, etc. Why should healthy individuals have to endure high premiums when we are not the ones causing all the high health care costs? Charge the ones who are responsible.
jvestal8050 