Health Insurers Want You To Keep Smoking
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Brendan Borrell, Scientific American: Health and life insurance companies in the U.S. 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 U.S. and the U.K., 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.”
The letter is the third report that the doctors — who all support a national health care program—have published in the last 14 years.
We decided to check in with some of the insurance companies mentioned in the letter to learn more about their policies with respect to tobacco stock. Prudential was unable to respond by press time. Sun Life, however, flatly denied the charges.
