Company efforts to stamp out tobacco often go up in smoke

WASHINGTON (AP) >> U-Haul has an unusual wellness goal for 2020: hiring fewer smokers.

The truck rental company said in January it will stop hiring people who use tobacco or nicotine products in the 21 U.S. states where it is legal to do so.

Executives said the new policy, which takes effect this month, is expected to the cut company costs by improving the health of UHaul’s 30,000-person workforce.

Screening new hires for tobacco use is rare. But employers have long used financial penalties and perks to try to reduce the financial toll of tobacco-related diseases, such as cancer, heart disease and stroke.

Those carrots and sticks are part of most corporate wellness programs, which also typically aim to encourage workers to exercise, lose weight and control diseases like diabetes.

In recent years, researchers have begun rigorously studying the programs. The results show little evidence that wellness plans improve employee health or lower health care costs.

Smoking-related medical expenses add nearly $170 billion a year to employer and government medical expenses, according to the Centers for Disease Control and Prevention. Employers also lose $156 billion in lost productivity due to smoking and related health issues.

Roughly 70% of large employers offer programs to help employees quit smoking as part of their health coverage. The gold-standard approach involves counseling sessions and nicotine gums, patches and medications to control cravings.

One fourth of large firms add another penalty to push smokers to quit: an extra charge on their health premiums. The fee usually amounts to about $600 a year for workers, according to survey data from consultant Mercer, which designs corporate health and wellness plans. About 10% of employers provide other incentives, such as points that can be redeemed for prizes.

Wellness returns?

Despite an estimated $8 billion spent on wellness programs annually, experts say they haven’t been shown to deliver the longterm benefits promised.

JENNY KANE - THE ASSOCIATED PRESS FILE PHOTO This file photo shows cigarette butts in an ashtray in New York. Moving company U-Haul has a new hiring policy and smokers need not apply. Starting this month the company will screen out people who use tobacco or nicotine when making new hires in certain U.S. states.