Obamacare Glitch for Smokers

obamacare-smokers-glitchThe older generation of smokers living in the United States are very thankful at the moment. Its unlikely that any of them expected a reprieve from the impact of Obamacare and increased insurance premiums would be the byproduct of a computer glitch but that seems to be the situation.

Consider the fact that there are approximately 3.5 million smokers over the age of sixty in the United States. Without this glitch older smokers would be expected to pay on average $4,500.00 more in premium costs. This Obamacare computer glitch could potentially cost the insurance industry almost 16 billion dollars in premiums for the next year.

Obamacare is the national health care plan implemented by President Obama with the goal of providing health care insurance to all Americans and to exert some control over the health insurance industry.

One aspect of Obamacare that really had an impact on the insurance industry was that insurers were forced to accept all applicants. To appease the insurance companies President Obama included a concession which allowed the companies to require smokers to pay a premium price that is fifty percent higher than nonsmokers.
Insurance companies considered this arrangement a winning proposition because of the profits that would be generated by billing older smokers more expensive premiums.
However, President Obama, in an attempt to protect the older generation and the country from being held captive by insurance companies charging excessive insurance premiums to older smokers, restricted the amount to which premiums could be raised. Obamacare has a provision which limits insurers from charging an older person who smokes anything more than triple what a younger smoker pays for insurance.

This created a conundrum because the concessions made to the insurance company and the older generation of smokers who are over sixty-five years old cannot work together. The numbers do not add up and the only way for it to be able to work is if the younger smokers and older smokers are subjected to the same penalty.

It has been estimated by many insurance experts that it will take approximately a year for the government to fix this computer glitch. The new penalties cannot be implemented onto smokers for the next year and this will result in a savings of approximately $4,500.00 in premium costs for older smokers.

The older generation of smokers can thank the federal governments computers for saving them money while the insurance companies will again complain about the inefficiency of the federal government.

The seniors will win this round of the fight but don’t be surprised if the insurance company is the eventual winner of this match.