  
   |
Higher health insurance premiums for tobacco users can help you recover some of the costs of tobacco use.Some public and private employers are choosing to charge higher health insurance premiums for employees who use tobacco. Legally, companies do have the ability to charge the higher premiums. However, federal law may limit the way in which health insurance policies can be structured. Learn more. Already, many large insurance providers-like Blue Cross/Blue Shield and Medical Mutual-offer health plans to employers that include higher premiums for people who have used tobacco in the last 12 months. This has been standard practice for years in life insurance, but in recognition of the health care costs imposed by tobacco use, such premium differentials are becoming more and more common in health insurance policies as well. Click here to learn how one Ohio company is using health insurance discounts to help reduce tobacco use among its employees. Federal Law and Health InsuranceHIPAA: The Health Insurance Portability and Accountability Act (HIPAA), a federal law that governs employee health benefits, contains a nondiscrimination section.. The section generally prohibits group health plans, such as those administered by employers, from requiring plan participants to pay more for their insurance simply because the participant has a "health factor." Nicotine addiction is considered to be a health factor. Wellness Program Exception: There is a Wellness Program Exception to the nondiscrimination requirement. It states that employers may charge premium differentials as part of an overall "wellness program." Current federal regulations do not provide a definition for the term "wellness program," and it is not clear when or if new regulations will define the term. Therefore, if you can make a good-faith showing that higher insurance surcharges for tobacco users are part of an overall "wellness program," you can legally charge higher health insurance premiums for these employees. Health insurance premiums for smokers vs. nonsmokers.ANTHEM Blue Cross/Blue Shield-Blue Access Plan 2 If you have used tobacco in the last 12 months: If you have not used tobacco in the last 12 months: Medical Mutual-SuperMed One 1500 If you have used tobacco in the last 12 months: If you have not used tobacco in the last 12 months: For Additional Information: |