Tuesday, July 16, 2013

Catron on Smoker Penalty Snafu

David Catron points out in his latest American Spectator piece that ObamaCare snafus will mean that non-smokers will involuntarily subsidize the health costs of older smokers

In effect, this is caused by a combination of price controls and bad software implementation.

From his piece:
Last week the Associated Press reported, “In yet another health care overhaul delay, the administration has quietly notified insurers that a computer system problem will limit penalties that the law says the companies may charge smokers. A fix will take at least a year.” How will this force non-smokers to subsidize smokers? Well, from the perspective of insurance carriers, smokers are high-risk customers. They get sick more often than non-smokers and their maladies are typically serious and expensive. So, if insurance companies want to remain solvent and they can’t charge smokers higher rates, they will have to increase premiums for everyone.
For more details on how this can create an unintentional benefit for smokers, read the full text of "Latest Obamacare Foul-Up Favors Smokers".