Smoke 'em if you got 'em

The ObamaTax has evicerated the concept of underwriting, at least so far as medical insurance is concerned. About the only thing for which carriers can levy a surcharge is tobacco use. In fact, the law allows them to charge up to 50% for tobacco users.Two questions spring immediately to mind: first, what's the definition of "tobacco use" and second, what if you lie about misrepresent your tobacco use when applying for coverage?The first seems simple enough. According to HHS (as included on ACA plan applications):"Tobacco Smoker definition – the legal use (other than religious or ceremonial) of any tobacco product on average four or more times per week within no longer than the last six months."So let's dig a little deeper: what, exactly, constitutes a "tobacco product?" Well, a Marlboro or a Cohiba would suffice, as would a nice briar or meerschaum, or even a "pinch of chaw."But what about e-cigarettes (e-cigs)?About a year ago, we looked at how life insurance companies were underwriting e-cig users ("vaping"). Turns out, some of the same issues will now confront those looking to buy a new ObamaPlan. That's because, as noted above, tobacco use can result in a substantial premium hike. But is "vaping" truly "smoking" (in that context)? To determine that, we really have to discover the source of the nicotine:"Nicotine is a[n] ... alkaloid ... found in the nightshade family of plants ... The main source of nicotine is the tobacco plant."Although it can also be found in much lo...
Source: InsureBlog - Category: Medical Lawyers and Insurers Source Type: blogs