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Blue Cross and Blue Shield of
Minnesota (Blue Cross) has announced a new policy to issue refunds to
nonsmoking individual policyholders who, although eligible, have not been
paying tobacco-free premium rates.
"Blue Cross has done more to promote smoking cessation and prevent
tobacco use than any other health plan nationally," said Richard Neuner,
senior vice president and chief marketing officer. "This new policy is
directly related to our commitment to promote and reward healthy behaviors.
We want to make sure that our members who don't use tobacco are rewarded in
any way that we can."
Approximately 12 percent of individual policyholders and five percent
of Medicare Supplement policyholders currently pay the standard or
tobacco-user premium rate -- roughly consistent with overall rates of
tobacco use among Blue Cross members. Individual Blue Cross policyholders
are eligible for tobacco-free rates, which are lower, if they have been
tobacco-free for at least 24 months. For Medicare Supplement policies, 36
tobacco-free months are required, recognizing the long-term negative health
effects of tobacco use.
If individual and Medicare Supplement policyholders find that they
inadvertently checked the wrong tobacco use status box on their policy
application, or have not informed Blue Cross that they have quit using
tobacco, all they have to do is call Blue Cross for details on a potential
refund.
Blue Cross has offered a tobacco-free rate since 1983 when we
introduced AwareCare insurance products for individuals. Earlier policies
did not offer this discount. Employers who provide group coverage make the
determination on their own whether to consider tobacco use status in
employees' contributions to their health care coverage. Blue Cross
currently insures 227,000 persons in the individual and Medicare Supplement
markets.
Individual and Medicare Supplement policyholders who do not smoke or
chew tobacco and think they might qualify for a refund can call Blue Cross
toll-free for more information at 1 (888) 878-0137.
Like most other insurance industries -- health, life, auto -- Blue
Cross offers discounted rates on individual and Medicare Supplement
policies for people who don't use tobacco. Smoking is the leading cause of
preventable death and smokers overall tend to have higher health care
costs. Each year, smoking kills 5,600 Minnesotans and is responsible for
nearly $2 billion ($1.98 million) in excess medical care expenditures (Blue
Cross Center for Tobacco Reduction and Health Improvement 2005 study of MN
Department of Health data.)
"To make sure our premiums are accurate, we regularly remind people of
the tobacco-free rates," Neuner said. "It's on the application form, in
materials we send out upon enrollment and in annual policy renewal letters.
The renewal materials have also regularly included a chart showing the
standard and tobacco-free premium rates. Two years ago, we added a note to
billing statements, as well, indicating whether members are charged the
standard or tobacco-free rate."
Blue Cross and Blue Shield of Minnesota, with headquarters in the St.
Paul suburb of Eagan, was chartered in 1933 as Minnesota's first health
plan and continues to carry out its charter mission today: to promote a
wider, more economical and timely availability of health services for the
people of Minnesota. A not-for-profit, taxable organization, Blue Cross is
the largest health plan based in Minnesota, covering 2.7 million members in
Minnesota and nationally through its health plans or plans administered by
its affiliated companies. Blue Cross and Blue Shield of Minnesota is an
independent licensee of the Blue Cross and Blue Shield Association,
headquartered in Chicago. Go to http://www.bluecrossmn.com to learn more
about Blue Cross and Blue Shield of Minnesota