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Barb: A Theoretical Analysis

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Barb: As long as the company is in one of the nine states that allow it, it is legal to charge an additional premium for smokers. Arguments for and against the extra charge. Arguments for the charge are that statistics state that those that “smoke a pack of cigarettes a day have claims that are 18% higher than those of nonsmokers” (Cihon & Castagnera, 2014, p. 337) and are 29% more likely to have medical claims over $5,000 per year and cost $1,000 more each year than those that smoke (Cihon & Castagnera, 2014, p. 337). If a company had many smokers who followed these results, the premiums for all employees could be raised. Those that do not smoke and are partaking in a more healthy lifestyle are subsidizing those who do not partake

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