Experimenting with new workplace models

Published 4 Min Read

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. The 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?

Walden Siew
Editor-in-Chief, Employee Benefits Group

Walden Siew is editor-in-chief of the Employee Benefits Group at Arizent.


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