Businesses Get Tough on Smokers October 14, 2004
News Summary
In an effort to trim health costs, a growing number of corporations are getting tough on smokers, with some companies no longer hiring people who smoke, the Wall Street Journal reported Oct. 12.Some companies give incentives to smoking employees who entered a smoking cessation program. But now, a more aggressive approach is being taken by a number of businesses.
Union Pacific Corp., for example, has launched a pilot program in seven states that prohibits people who smoke from being hired. At General Mills Inc., employees who smoke pay a $20 a month "smokers' surcharge" on health premiums.
In the Midwest, a manufacturing plant plans to reduce short-term disability benefits for smokers. Under the plan, disabled non-smokers would receive 90 percent of their regular pay, while smokers would receive only 60 percent.
In Alabama, a governor's panel recommended a monthly surcharge for public employees who smoke. Gov. Bob Riley is expected to bring the proposal to the state legislature this fall.
While critics question the legal and ethical issues surrounding such plans, employers say this is the best way to control health costs. Research shows that a person who smokes can have medical expenses nearly 15-percent higher than a nonsmoker.
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