Firms Charging Smokers and Obese More for Healthcare
By: Stephanie Castillo
Updated: November 2, 2011
HEALTH -- Like a lot of
companies, Veridian Credit Union wants its employees to be healthier. In
January, the Waterloo, Iowa-company rolled out a wellness program and
voluntary screenings.
It also gave workers a
mandate - quit smoking, curb obesity, or you'll be paying higher
healthcare costs in 2013. It doesn't yet know by how much, but one
thing's for certain - the unhealthy will pay more.
The credit union,
which has more than 500 employees, is not alone.
In recent years, a
growing number of companies have been encouraging workers to voluntarily
improve their health to control escalating insurance costs. And while
workers mostly like to see an employer offer smoking
cessation classes and weight loss programs, too few are signing up or
showing signs of improvement.
So now more employers
are trying a different strategy - they're replacing the carrot with a
stick and raising costs for workers who can't seem to lower their
cholesterol or tackle obesity. They're also coming down
hard on smokers. For example, discount store giant Wal-Mart says that
starting in 2012 it will charge tobacco users higher premiums but also
offer free smoking cessation programs.
Tobacco users consume
about 25 percent more healthcare services than non-tobacco users, says
Greg Rossiter, a spokesman for Wal-Mart, which insures more than 1
million people, including family members. "The decisions
aren't easy, but we need to balance costs and provide quality coverage."
(Reuters) For more information: Read more
(Reuters) For more information: Read more
