Under the Affordable Care Act (ACA) and effective January 1, 2014, insurers are permitted to use the following four categories to determine premiums:



Family Size




To comply with this provision, IBC will be implementing a new process to collect tobacco usage as part of their rating methodology for groups with 2-50 employees and sole proprietors.


Over the next several days, IBC will send letters to employers with January 1, 2014 renewal dates to gather this information. In the mailing, there will be a letter and a Tobacco Use Form, that must be completed for each of their employees and dependents age 21 and over to determine if they are a “Tobacco User”. These forms must be completed within two weeks of receiving these mailings.


Moving forward, IBC will be sending letters approximately seven months prior to the renewal date.

For the complete communication, sample of the letter and Tobacco Form, please access the Broker Resource Center.


If you have any questions, do not hesitate to contact your dedicated account manager today!