Effective for 2014, the ACA allows health insurance issuers in the individual and small group markets to impose a tobacco use surcharge, within a ratio of 1.5 to 1. In addition, issuers of plans offered through an Exchange may also impose up to a 1.5:1 tobacco use surcharge.

The attached Legislative Brief provides an overview of the tobacco use surcharge.

Tobacco Use Surcharge in 2014