Source: Jilian Mincer / Reuters
In recent years, a growing number of companies have been encouraging workers to voluntarily improve their health to control escalating insurance costs. And while workers mostly like to see an employer offer smoking cessation classes and weight loss programs, too few are signing up or showing signs of improvement.
So now more employers are trying a different strategy – they’re replacing the carrot with a stick and raising costs for workers who can’t seem to lower their cholesterol or tackle obesity. They’re also coming down hard on smokers. For example, discount store giant Wal-Mart (WMT.N) says that starting in 2012 it will charge tobacco users higher premiums but also offer free smoking cessation programs.
Tobacco users consume about 25 percent more healthcare services than non-tobacco users, says Greg Rossiter, a spokesman for Wal-Mart, which insures more than 1 million people, including family members. “The decisions aren’t easy, but we need to balance costs and provide quality coverage.”
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