INDIANAPOLIS (AP) — Indiana University workers who are overweight, smoke or have high blood pressure could pay higher health insurance premiums under a new policy taking effect next year.

University officials say they want to create incentives for people to reduce their health risks — and subsequently lower their insurance costs. But some employees fear the plan will unfairly penalize those with health issues.

“There are a lot of people who have said this really took them by surprise and are very upset,” said Erika Dowell, president of the Bloomington Faculty Council. “This is a big shift for IU employees.”

IU’s 17,000 covered employees and their spouses or domestic partners can lower their premiums in 2011 by undergoing voluntary health screenings for risk factors and avoiding tobacco use.

Those who decline to participate will pay $480 to $1,920 more a year for family coverage in 2011, depending on an employee’s income level. In subsequent years, those who fail to meet target levels for blood pressure, cholesterol and other risk factors such as body-mass index likely would pay a surcharge.

Neil Theobald, vice president and chief financial officer for the university, said the steps are necessary to control soaring health insurance costs.

“We went from $151 million to $165 million in just one year, and health care costs are projected to go to $178 million next year,” he said.

He said the $15 million jump in health costs would have paid for a 2 percent raise for employees, who did not get a salary increase.

“We’ve got to get a handle on this. It’s not sustainable,” he said.

IU’s change is part of a shift among large employers trying to reduce health costs. Meijer, IBM, Johnson & Johnson and Indianapolis-based hospital system Clarian Health are among employers offering financial incentives for good health.

Stephen Gregory, director of employee benefits at Carmel-based Shepherd Insurance & Financial Services, said employers are using financial incentives to try to prod workers to improve their health and to seek preventive care instead of waiting to seek help until they develop serious medical problems.

“You find a person who’s proud of the fact they haven’t been to the doctor in five years, and (an incentive program) gets them engaged before something happens to them,” Gregory said.

Theobald said IU has established a task force and is consulting medical professionals to determine reasonable targets for various health factors, such as blood pressure and cholesterol levels.

Dowell said some people worry that genetic predispositions could prevent them from achieving discounts regardless of what they do to improve their health. But she said such programs aren’t new and can have good results.

“It’s not some sort of special torture the university dreamed up,” she said. “It’s just going to be a change, and change can be intimidating.”

Posted 8/16/2010