Applied Strategy
Recently, my employer announced that healthcare benefits would change for the coming new fiscal year. While we have a very good employer sponsored/subsidized healthcare package, recent changes in healthcare reform I think drives some of the changes in our benefit package.
Employers are responsible for many new provisions that will become due 2014, courtesy of the Affordable Health Care Act of 2010. As a result, employers taking advantage of incentives and trying to avoid penalties of the Act. Many are coming up with strategic plans that will both keep their employees insured while concerning themselves with the overall health of their employees.
My employer pays for Healthcare for employee only and subsidizes the premium for families. Among the changes that will be made to our healthcare package, is an increase in premium and an extra charge for employees that smoke. Beginning in September smokers will be charged $30 per month extra for each family member that smokes, up to 3. As an incentive for smokers to quit, my employer is offering a grace period, if they quit within 60 days of the plan start the extra fee will be waived. They are also offering smoking programs aimed at helping them to kick the habit to avoid the extra premium.
I believe that my employer is ahead of the game. They are taking steps now to make provisions to keep qualified employees healthy. Along with smoking cessation program, they offer exercise programs, affordable weight loss programs and eating healthy programs all aimed at keeping employees healthy, thereby lowering health claims and minimizing healthcare cost.
I believe the return on my employer’s investment and the return on our efforts to become healthier employees will be substantive, measurable and positive. It will in the long run, I believe, keep our employer investing in our health and well being. It will also allow us not to become one of the 30% of employees that will lose employee sponsored health plans as predicted by a survey conducted by the Congressional Budget office because of the Affordable Healthcare Act.
This applied strategy is a win win both for my employer and for us (the employees) that take advantage of the Health and Wellness Programs my employer offers. If employees are healthier, they are more productive; they call in sick less often and a healthier lifestyle will minimize our chances of many diseases. My employer will enjoy the benefits of a healthier workforce and have less large medical clams to pay, the quality of work will be better and they will be able to retain quality workers.
Rose,
ReplyDeleteThank you for your post. Can you work in cites for a number of the issues you reference? You don't need to link back to your employer, but several trends/patterns you discuss certainly have relevant links and ties.
Dr.V.
This comment has been removed by the author.
DeleteThis comment has been removed by the author.
DeleteSo how does the company or the insurance company know if you smoke? If you do not want to pay and extra $360 a year, just say you dont smoke when they ask you. How is it even legal to charge extra for someones poor choices? Should you pay more if you eat at a buffet regularly? Surely obesity has just as many health implications as smoking.
ReplyDeleteI think it is a good thing to offer incentives to quit smoking. I quit 2 1/2 years ago after smoking for 15 years. I'm just not sure that forcing smokers to pay more doesn't take away from peoples freedoms. If they were to reword it so that everyone pays one rate and non-smokers get a discount, it might seem better.
In response to Rose’s post, I think that adding the clause to the insurance plans is a good idea. But this is coming from the view of a non-smoker. I am sure that smokers may or may not see things differently. Hoose82 comments about someone’s eating habits versus someone smoking makes sense, both can lead to bad health. For one thing you can test the employees to see what their tobacco exposure is and they are able to tell if it is exposure or it was inhaled.
DeleteIs it fair, probably not? But you have to eat to live (in whatever capacity you consume the food); you do not in any way need tobacco to live. I am sure that is why this is target instead of eating habits. I know a few of the area hospitals are starting to do that. I thought it was crazy the first time I heard of it. But after thinking about it, it makes sense. Basically they have to start somewhere and they probably thought use of tobacco would be a good place. The thing is they are not banning smokers from smoking they are simply saying, “We would like you to stop, but if you choose not to you will just pay more money”. This may or may not discourage the habit. But instead of everyone being affected they will just add this fee.
Looking over this article from USA Today,http://www.usatoday.com/news/health/2010-04-26-bad-habits-death_N.htm it seems not one habit is worse than the other. The studies seem to show that bad eating habits can lead to cancer just as smoking can.
I'd like to start by saying this is a very well written post Rose, good job. However, I don't know how I feel about these "incentives" worked into an insurance plan. I absolutely understand encouraging workers to lead healthier lifestyles, and am in total favor of the exercise and weight loss plans. However, making smokers pay a higher premium seems, to me at least, like an infringement on their freedom. I could understand if they decided to make their workplace smoke-free, or tobacco free for that matter, but I don't think they should be able to penalize people for what they do on their own time. I'd like to expand on Hoose82's comparison of smoking and obesity with alcoholism. The abuse of alcohol is much more rampant than that of smoking, and the health benefits are just as bad. There would be outrage from many employees if a company made them pay a higher premium for insurance because they drink. It makes sense that both businesses and insurance companies would encourage a healthier lifestyle, but it doesn't seem they should be able to charge people more for what they do in their free time.
ReplyDeleteRose,
ReplyDeleteI think your company is forward thinking by having an incentive for employees to stop smoking. Smoking is linked to health issues such as cancer and cardiovascular and respiratory disease. With the recent developments in medicine and technology, the costs for health care are constantly rising. In the past, those who were chronically ill with high health care costs were sometimes dropped from their insurance plans or denied coverage in order for insurance companies to make a profit. With the new reform it is against policy to deny coverage to those same patients. Insurance companies now have to increase premiums to make up for costs incurred by those chronically ill patients. It is no wonder why preventative care is a big topic when the health care is discussed. Texas alone has received $38 million from the Preventative and Public Health fund to help communities live healthier lives and keep down costs.
Insurance companies are now offering screenings and vaccines to patients for no co pay as an effort to increase the practice of preventative care. Your company is taking it a step further with the extra charge and providing programs to assist in the change. Yet, I agree with Hoose82 in applying a discount for those who do not smoke along with the extra charge for smokers. It seems more appealing that way and stresses the benefits of not smoking.
I believe more organizations will begin charging extra fees for such unhealthy behavior and offer programs to promote healthier living. This new tactic is just the beginning of a country wide effort to tackle rising health care costs
Thanks for the comments guys. You all made some very good points about my blog. When I first read our new healthcare benefit package requirements, I did not understand it. I really thought as Josh and Hoose82 do, the requirements was an infringement on my rights as an individual.
ReplyDeleteI quit smoking several years ago, and may would have not ever understood the surcharge then. However, now, when I think of the charge as business decision and as an over all strategic plan to cut healthcare claims costs, employ healthier individuals, while maintaining coverage for all of its employees, it does make sense.
There is a movement by employers, healthcare companies and the government to lower healthcare cost. Other employers are trying to manage these costs by doing as my company is doing. In a recent article in the New York Post, Nov 16, 2011 Smoker's Surcharge, Walmart employees faced the same thing. http://www.nytimes.com/2011/11/17/health/policy/smokers-penalized-with-health-insurance-premiums.html?pagewanted=all
Rose
I have one question but before I ask I like to say that anyone taking steps to live a healthier lifestyle is a great thing. It seems in today's society though I don't even no what the word freedom means anymore.I feel as though their are new restrictions placed everyday and personal choice doesn't even matter. When will the line be drawn on how far government and big business will go? Not to say what your company is doing is a bad thing by trying to keep their employees healthier.I have to wonder though how many smokers will continue to stay with your employer because of the injustice they might feel to the extra cost. My question is why are insurance companies increasing costs to businesses. I don't understand if this healthcare reform was suppose to make it affordable so that everyone can have access to healthcare coverage why does cost keep rising? Their needs to be a cap put on these insurance companies that is the real issue.I'm sorry to say this but I believe even if you have the healthiest employees cost will still steadily increase and insurance companies will come up with another excuse. These programs your company put in place are amazing and I'm all for it but I believe it is a temporary solution and it's not the real problem for all the rising costs.
ReplyDeleteI just recently purchased insurance a few months ago and just faced this problem. Although I had quit smoking a few months prior they contacted my doctors that I have seen in the last year and requested my information. They were informed that I had smoked within 12 months of purchasing insurance, so I had to pay the extra $31 a month for every prior month that I had insurance. My premium was then increased to the new amount. I have mixed feelings about this, but feel that it will lead to people lying to the doctor about smoking. If I had not told the doctor I had smoked, I would have saved quite a bit of money. Although I had taken the steps to quit, I am still paying a higher premium. I do think that the company offering the "grace period" and helping people quit smoking to avoid the extra charge is awesome.
ReplyDeleteI was unaware of these changes. The plan sounds like a good one but I believe that people will answer untruthfully to save a dollar.
ReplyDeleteJennifer and others.
ReplyDeleteI wondered how would businesses know if someone smoked or not. I thought an employee could always lie, but if companies are checking their ecmployee's doctor's notes, it would not be a good idea for an employee to lie. I do feel for companies to get information about you without your consent is an invasion of privacy. Is not what HIPPA is suppose to protect, patient and doctor privacy?
The are questions you and other raised are very good. There should be a line drawn, but where? This new healthcare law is confusing to me and I haven't formed an opinion yet for or against it. I have heard some good and bad things about the charges and penalties, but have not had time to read it for myself.