One of the reasons we have an excise tax on tobacco is because as taxpayers we have to fund the healthcare of those who smoke, and the rationale is they should pay for the costs of their choice – not us. And as it happens the level of tobacco excise tax is well above the level needed to cover the estimated costs associated with smoking.
This got me wondering about how the costs are calculated in countries where people generally pay for their own healthcare, such as the US.
So my question is, does anyone know what the difference is in premiums in the US for health insurance for a smoker and non-smoker?
Also does anyone know what the difference is in NZ for life insurance premiums between a smoker and non-smoker of the same age?