Minn. Blues Refunds Nonsmoking Policyholders Charged Smoker Rates

Blue Cross and Blue Shield of Minnesota 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 it 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) 460-4020.

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, identifies itself as 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.

Source: Blue Cross and Blue Shield of Minnesota