HEALTH CARE COSTS

Whirlpool Factory Suspends 39 Workers, Saying They Lied About Tobacco Use

When filling out documents you should always be truthful. Firms are trying to keep costs under control. Health care is an expense that is rapidly increasing ["Since 2000, employment-based health insurance premiums have increased 100 percent"]. Firms are assigning costs to people who are more expensive to insure. Apparently some people may have lied in paperwork they filled out stating they were not tobacco users. This may have been done to save the $500 extra the firm charges tobacco users for insurance [< $10 a week]. A small excerpt is below. Full story can be found here.

"A 2007 national survey showed that 16 percent of all large employers -- those with 20,000 or more employees -- adjust health care premium contributions according to the worker's smoking status, according to the human resources consulting firm Mercer."

Thoughts & Analysis

This is surely going to increase [above 16%] across employers of all sizes in the coming years. Especially if health care expenses are significant for the firm. Some firms have such high turnover that employees are not employed long enough to gain coverage. This is most certainly the exception to the general trend.

If it turns out the employees committed fraud in their paperwork they will be terminated. Now is bad time to be losing a job [not that there is ever a good time to lose a job]. Hopefully there are some lessons learned from this situation.

Always be honest. Even if it is going to cost you.

Start thinking about your health and fitness level. You should take good care of your body; it's the only place you have to live.

The choice is yours. What are you going to choose?