Employers have long acknowledged that it costs more to insure employees who smoke. Now the Pennsylvania State University health plan will levy a surcharge of $75 per month for those who use tobacco, and some faculty members are arguing it would reduce their compensation.
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Get Your Report Now!Penn State officials described the up charge for smokers as “one component in the strategic plan to improve employee health and better control health care costs for Penn State and its employees.” The university defines a tobacco user as someone who has used cigars, cigarettes, or any other tobacco product more than five times in the previous 3 months.
The changes, which kick in January 1, 2014, are part of a package of benefit changes at Penn State. Also included was a monthly $100 surcharge for employees and spouses who do not participate in wellness plan activities, including biometric screenings and physical exams.
In justifying its decision, Penn State cites Centers for Disease Control research that links tobacco with nearly one in five deaths in the U.S. and accounts for at least 30 percent of all cancer deaths.
Susan Basso, vice president for human resources, explained, “We want to help our employees and their families to be as healthy as possible, and for those who use tobacco, providing them with resources to help them quit certainly will help us accomplish that goal.”
News of the $75 smoker surcharge was criticized by faculty members, including those who are nonsmokers. The website InsiderHigherEd.com quotes professors, who don’t like the idea, arguing that the university is essentially reducing the compensation of employees because they smoke. They oppose initiating the principal of penalizing employees, including financially, for engaging in legal conduct.