Young Smokers…

I was searching for new news on the ACA and found a bit of interesting information.  According to the new law, insurers are allowed to charge smokers more for their health insurance on the exchanges.  That makes sense, right?  Of course it does, they are a higher risk.  But how do younger smokers compare in risk to older smokers?  Younger smokers are lower risk.  They haven’t been smoking as long and so their smoking is not having the same long term negative effect on health that longer term smoking has.  This is how the insurers feel and wanted to be able to charge a smaller surcharge on younger smokers than older smokers.

Unfortunately, due to a computer issue, for 2014, there will be one standard surcharge for smokers policies.  So, the government is requiring insurers to charge more than they would like to for insurance sold through the government exchanges.

So, if you are a young smoker, you will want to evaluate what your insurance will cost in the free market without a subsidy vs. what your policy will cost on the government exchange with the subsidy.  For those that are above 300% of the Federal Poverty Level (FPL), they may be better off not taking the subsidy and purchasing outside the government exchange.

I am sure there are many more changes to come.  The bottom line is it would be best to work with an insurance professional that specializes in Health Insurance when it comes time to evaluate your insurance options.  But that is a topic for another day…

More to come…

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