Health Insurance Case Study Essay
The case study by Spencer (2014) examines the options of small business owners, John and Liza, faced with a 25% increase in health insurance rates. Once it is determined that …show more content…
Another option is to penalize employees who smoke with increased rates, rewarding employees who do not smoke. A 2009 study by the Journal of Tobacco Policy & Research found that smokers take more sick days than their non-smoking co-workers. Even smokers who are otherwise in relatively good health typically have higher medical costs compared to non-smokers, justifying the increase in insurance premiums within this group (Kapur, Karaca-Mandic, Gates, & Fulton, 2012). Employees who fail to meet the deadline should face increased premiums, as their decision negatively effects the employers overall plan. Insurers are able to charge tobacco users 50 percent more than nonusers who are not participating in a cessation program (Pratt, 2013).
Employers should provide smokers with resources to help them quit, and a deadline in order to do so. Insurance companies are often able to provide smoking cessation resources through Employee Assistance Programs. However, rewarding employees for