Employers who provide health insurance often use financial incentives, such as contributions toward premiums, to encourage workers to participate in wellness programs like smoking-cessation courses.
Now some employers are wielding a stick as well as a carrot. Employees at some companies who are overweight, smoke, or have high cholesterol, for instance, and who don't participate in supplementary wellness programs, will pay more for health insurance. In extreme cases, employees' insurance deductibles could rise by $2,000.
Of course, this is generating some scandal and talk of possible lawsuits.It reminds me a little bit of my favorite scene from favorite scene from Spinal Tap, where Nigel Tufnel explains to an observer that the band's amps go to 11, rather than 10. The incredulous man asks how that really makes them go louder -- they only go to a certain volume, regardless of what number it's labeled.
Similarly: Charging a premium for engaging in an unhealthy behavior is not different from offering a reward for not engaging in the same behavior in any sort of meaningful way.
This seems like one big labeling issue, but it should give trial lawyers something to keep them busy.
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