by William White | July 9, 2013 3:14 pm
The Obama administration notified insurers today that a computer glitch will limit how much companies can charge smokers.
The glitch, while only temporary, is estimated to take a year to fix. Until then companies won’t be able to charge penalties to smokers as high as what laws would allow, reports CBSNews.
“Because of a system limitation … the system currently cannot process a premium for a 65-year-old smoker that is … more than three times the premium of a 21-year-old smoker,” reads a Health and Human Services Department document provided to CBSNews. “If an insurer tries to charge more, the submission of the (insurer) will be rejected by the system.”
The Obama administration advises insurers to limit the penalties to a flat rate across all age groups until the glitch is fixed, reports CBSNews.
Last week the Obama administration announced that the part of the Affordable Care Act that would force business’ with 50 or more workers will be delayed until 2015.
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