Health insurers want you to keep smoking, Harvard doctors say (Scientific American)

**Drew Wilson** · June 7th, 2009, 12:25 AM

Health and life insurance companies in the US and abroad have nearly $4.5 billion invested in tobacco stocks, according to Harvard doctors.

“It’s the combined taxidermist and veterinarian approach: either way you get your dog back,” says David Himmelstein, an internist at the Harvard Medical School and co-author of a letter published in this week’s issue of the New England Journal of Medicine.

The largest tobacco investor on the list, the 160-year old Prudential company with branches in the US and the UK, has more than $1.5 billion invested in tobacco stocks. The runner-up was Toronto-based Sun Life Financial, which apparently holds over $1 billion in Philip Morris (Altria) and other tobacco stocks. In total, seven companies that sell life, health, disability, or long-term care insurance, have major holdings in tobacco stock.

Why is it a big deal? “If you own a billion dollars [of tobacco stock], then you don’t want to see it go down,” says Himmelstein, “You are less likely to join anti-tobacco coalitions, endorse anti-tobacco legislation, basically, anything most health companies would want to participate in.”

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I think I'm gonna be sick.

**fleecy** · June 7th, 2009, 12:26 AM

yup.... i think i just threw up in my mouth a little.

**Signa** · June 7th, 2009, 12:54 AM

I'm confused. How does you dieing help them? They are being paid by you to pay for your medical bills. The only reason they stay alive is because all the healthy people that don't get sick are paying too. If everyone is sick from tobacco, then how do they make more money than they put out?

**Drew Wilson** · June 7th, 2009, 01:49 AM

Originally Posted by Signa

I'm confused. How does you dieing help them? They are being paid by you to pay for your medical bills. The only reason they stay alive is because all the healthy people that don't get sick are paying too. If everyone is sick from tobacco, then how do they make more money than they put out?

My guess is that health insurers want to make the bucks off of all that tobacco being sold. So when the smokers kick the bucket, the insurers have made more than enough to cover the cost of the dead people that smoked over several years. Essentially, profiting off of gradual suicide twice in one go.

**mountain_rage** · June 7th, 2009, 08:14 AM

If I'm not mistaken, it costs more for a smoker to get insured. So its not like insurance companies are losing money on smokers, they simply charge them higher premiums for the higher risk. Insurance works on investments, and the less they need to pay out the better, I guess in this instance they are double dipping.

**1cooldude** · June 7th, 2009, 11:20 AM

either way that is an unethical process and they should be ashamed.

**moneoa** · June 7th, 2009, 12:33 PM

lol you guys don't know?

Insurance wants nothing more than a whole lot of smokers paying for insurance and filling their pockets. The magic comes in when they die and Insurance does not pay out because your a smoker and are predisposed to die from that and that's a violation of your policy.

Or they could argue you have a pre existing condition form your smoking that you never bothered to disclose.

Insurance companies are unbelievably corrupt

**fleecy** · June 8th, 2009, 05:05 AM

yup, they rank just above telemarketers on my BS meter.

**drtoker** · June 8th, 2009, 10:17 AM

You guys act like smokers die instantly or something. Theres a long road of health problems related to smoking to treat and make money off of before they die, as well as the profits from the tobacco.
Win win.