Kokomo Tribune; Kokomo, Indiana

Local News

October 25, 2013

Smokers will pay higher premiums

Subsidies won't bring down higher costs.

(Continued)

Reuters provided the following example, someone earning $20,000 a year would qualify for a $3,000 subsidy on an insurance plan costing $4,000 a year. This would make his annual cost $1,000. But if he’s a smoker, the same plan might cost $6,000 a year (factoring in the 50 percent surcharge on the $4,000 sticker price). He would still only get a $3,000 subsidy, because the subsidy can’t be applied to the smokers’ penalty. That means he would pay $3,000 out of pocket instead of $1,000.

Readers can submit their questions on the Affordable Care Act to Enterprise Editor Ken de la Bastide at ken.delabastide@kokomotribune.com or by mailing them to Kokomo Tribune, care of Ken de la Bastide, 300 North Union St., Kokomo, IN, 46901.

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