In most states (New Jersey, Massachusetts, Vermont, Rhode Island and District of Columbia are among the exempt), it is legal to charge smokers more for healthcare and life insurance.
This is where it gets interesting.
When the Affordable Care Act was put into place, two provisions were made. One was that older plan participants could be charged 3 times more for health insurance than younger participants. The other was that smokers could be charged 1.5 times more for health insurance than non-smokers. But there was a fault error that no one could be charged more than 3 times what the least expensive participant is paying. So it became impossible for older smokers to be charged the full amount- this was referred to as the “smoker’s glitch.” However, this glitch in the computer system is being fixed in 2015, so if you are an older smoker, and using the healthcare marketplace for insurance, you should seriously consider quitting, as your rates will rise quite a bit.
If your insurance company is aware that you smoke, enlisting your doctor’s help for smoking succession and reporting success at the end of 8 or 12 weeks can help save you money. Use online resources like those found at http://smokefree.gov/.
Before you start, call both your health insurance company and your life insurance company, tell them if your plans, and find out exactly what they need for you to qualify as a non-smoker. Also, don’t expect to see an immediate drop in rates. For life insurance, it make take as long as two years certified tobacco-free before rates begin to drop. You may also want to find out exactly what they include or exclude as a tobacco product. Find out how they monitor. Some companies use the honor system, some companies require blood tests for nicotine, or physical exam by a physician.
For example, increased rates may apply to only cigarettes for some companies. Other tobacco products, like chewing tobacco, cigars, and e-cigarettes (vaping) are exempt. This does not mean these are without health risks, so don’t be fooled. Do your research and discuss with your doctor if you plan to switch.