Cigarette smokers might get cut a break under President Barack Obama's health care legislation that excuses tobacco-related penalties which could cause premiums to go up.
Furthering the delay on Obamacare's passage, the POTUS' administration told insurance companies that a glitch in the computer system will put a limit on company penalties that impart charges on smokers.
It will take at least a year to fix the glitch.
Smokers of older age will most likely reap highest benefits from the glitch, according to CBS News. But younger puffers might end up having to pay higher penalties depending upon how insurers respond to the system's error.
According to a Health and Human Services Department document, the glitch in the system creates a limitation that renders it unable to "process a premium for a 65-year-old smoker...that is more than three times the premium of a 21-year-old smoker." If a certain insurance company attempts to up the price, "the submission of the insurer will be rejected by the system."
Come 2014, the legislation will make insurance companies accept each applicant, disregarding previous medical issues. The companies can also charge smokers anywhere up to 50 percent more premiums, which will help insurers keep high-risk customers away.
Under Obamacare, people who aren't covered by their job's health insurance have the option of doing their own searching for private insurance companies. Tax credits from the government will help pay for premiums. Small business will be allowed their own insurance markets, CBS reported.
Since the President first put the Obamacare bill on the table, preparations for Oct. 1's launch of new health insurance has been littered with last-minute changes and delays. Some insurance companies and government officials say that the various nuances of the requirement, in addition to the need to address issues from employers, has slowed the process.
"This was an administration that was telling us everything was under control," Robert Laszewski, health care industry consultant, told CBS. "Everything was going to be fine. Suddenly this kind of stuff is cropping up every few days."
What's the next move for insurance companies? That's still hazy-but a spokesperson for American's Health Insurance Plans said that insurers will keep the glitch on their radar, with expectations that the Obama administration will eventually fix it.
