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Smokers cost U.S. employers $170 billion for medical care, and more than $156 billion from lost productivity every year, the Centers for Disease Control and Prevention estimates. One company is trying a drastic way to cut down on its healthcare costs.
U-Haul late last year said it would no longer consider job prospects who use nicotine products in 21 states where it is legal to do so. U-Haul's policy went into effect in February, providing a test case on whether the strategy will be effective in lowering healthcare costs - and whether it will unleash a backlash. The strategy may present a slippery slope for employers. If smokers can be banned, what about alcoholics, the obese and those deemed to be unhealthy? And who would determine that?
The Equal Employment Opportunity Commission already is deciding whether to allow companies to inflict financial penalties on employees who don't comply with wellness programs. Employers currently can under the Affordable Care Act, but the courts are debating whether it conflicts with the ADA.
Associate editor Kayla Webster spoke with...