More Unraveling: The Smokers Glitch
The Obama administration — in yet another health care overhaul delay — has quietly notified insurers that a computer system glitch will limit penalties that the law says the companies may charge smokers. A fix will take at least a year to put in place.
Older smokers are more likely to benefit from the glitch, experts say. But depending on how insurers respond to it, it’s also possible that younger smokers could wind up facing higher penalties than they otherwise would have.
Ricardo Alonso-Zaldivar, Associated Press.
“Because of a system limitation … the system currently cannot process a premium for a 65-year-old smoker that is … more than three times the premium of a 21-year-old smoker”
Way to mess up
It’ll take a while for many glitches to get fixed, if they do at all.
“it’s also possible that younger smokers could wind up facing higher penalties than they otherwise would have.”
It seems like young people are getting screwed again at every turn.
Older enrollees can be charged a premium that’s no more than three time the premium of a younger person. Smokers can also be assessed an additional health risk penalty. Presumably, older smokers would face a proportional penalty on the higher premium.
I don’t have a problem with this since smoking-related health issues are more likely to manifest themselves in people who have smoked for a long time. With the possible exception of colds and bronchial issues, I doubt if smoking significantly increase health costs in young people.
Exactly my thoughts. Young smokers haven’t been smoking long enough to reap the health costs that a older smoker would.
“Another workaround for the companies would be to charge the full penalty to both younger and older smokers. In that case, there wouldn’t be any savings for older smokers, and younger ones would see a big price shock.”
Not cool
My generation is getting shafted left to right. I am not happy.
It’s ok. Soon, we can start shafting the next generation to make up for it.
How big is the price shock? If your insurance/healthcare provider knows you smoke wouldn’t your insurance prices skyrocket even before Obamacare?
You can’t rewrite the exchange code to test for smoker and shift to another premium in less than a year?
Makes one wonder if they even have code.
Will these penalties differentiate between cigarette smokers, cigar smokers and users of other tobacco products (such as snuff), where the health risks are much lower?