Obamacare smoking penalties must be the same across age groups

Amateur hour: Smokers may get temporary break from Obamacare penalties – CBS News.

A “system glitch” requires that the penalty for tobacco use be constant across age groups.

There are two potential solutions that work within the government limitations:

1. The administration is suggesting that insurers limit the penalties across all age groups. The HHS guidance document used the example of a 20 percent penalty.

In that case the premium for a 64-year-old would be about $10,900, a significant cut from the $13,600 if insurers charged the full penalty.

OR…

2. Another workaround for the companies would be to charge the full penalty to both younger and older smokers. In that case, there wouldn’t be any savings for older smokers, and younger ones would see a big price shock.

Levitt said he suspects insurers would keep the penalties low to sign up more young people. Laszweski said he thought they would do the opposite.

You can’t make this stuff up. Prediction: Chaos

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