It seems as if North Carolina is about to become the second state to impose a so-called “Fat Tax” on its state employees and it seems as if smokers will feel the impact as well.
Poor nutrition, lack of exercise and smoking are among the leading causes of preventable deaths in North Carolina. By imposing this sort of fee, North Carolina is hoping to not only save the state millions of dollars but that these unhealthy people will become healthier.
How do they plan on doing this? As of July 2010, tobacco users will begin paying more for their healthcare and in July 2011, people that qualify as “obese” will be placed into a health plan that will also cost them more money. To determine whether or not an individual is obese, insurance companies will measure the employees BMI, Body Mass Index.
Last year, the N.C. health plan for state employees cost over $2.6 billion which included 600,000 state employees, teachers and retirees. Last spring the Legislature had to give 250 million to cover bills due to rising costs, which left little money for claims. Over the next 2 years, NC will receive another $408 million from the state general fund.
Although how much money will actually be saved from the “obesity requirement” is still unknown, it is estimated that placing tobacco users in a special health plan may save an estimated $13million in the 2010-2011 budget.
Although there are justifications for and against penalizing unhealthy lifestyles and reward those that are healthy, insurance companies have been doing it for years. Some health insurance plans have been penalizing their smokers by adding a $25 per month fee to their existing health plan, while other insurance companies have been giving non-smokers a discount on their health care costs.
Will this encourage people to lose weight? Will certain exceptions be made for those with glandular disorders? Will insurance companies start covering more weight loss medications? It all remains to be seen.
It will be very interesting to see just how many other states will follow suit.