Smokers will pay same rates as nonsmokers in D.C. insurance exchange

[WestVirginiaRebel]

Washington Post:

With less than six months until the District’s health insurance exchange is set to debut, policymakers have made another momentous decision that will affect how much residents pay for coverage.

On Monday, the D.C. exchange’s executive board voted to prevent insurers from charging higher premiums to smokers than to nonsmokers — meaning nonsmokers are likely to pay modestly higher rates than if smoking surcharges were permitted. The District joins three states — Massachusetts, Rhode Island and Vermont — that have banned tobacco surcharges on their own exchanges.

Mohammad N. Akhter, chair of the D.C. Health Benefit Exchange board and a former city health director, said the authority had no hard data on what cost impact banning tobacco surcharges might have on nonsmoker premiums. But he said the vote furthers the board’s policy of encouraging broad participation in the exchange.

“It makes public-health sense to make sure we do the right thing by the people,” he said. “Smoking is an addiction, and we just want to give people a fair shot to participate in the health care exchange.”

The surcharge ban applies to health plans sold within the exchange, which is set to open Oct. 1 and must be used by individuals and, if the D.C. Council endorses a previous board recommendation, employers covering up to 50 people. Larger employers purchasing outside the exchange would be able to choose plans that charge smokers more.

________

 

Pricing insurance companies out of business.