PHOENIX (AP) — Arizona's cash-strapped Medicaid program is considering charging patients $50 a year if they smoke, have diabetes or are overweight. A spokeswoman for the Arizona Health Care Cost Containment System said Friday the fee is intended to rein in health care costs by pushing patients to keep themselves healthy.

"It engages the consumer to start having a greater awareness of how they fit into the bigger health care puzzle," said Monica Coury, spokeswoman for AHCCCS. "We want to be able to provide health care to people. And we want to stretch our dollars as far as we can. Part of that is engaging people to take better care of themselves."

Some private employers and state governments have instituted higher insurance premiums for workers who are overweight or smoke, but Arizona's plan would mark the first time a state-federal health care program for low-income residents has charged people for unhealthy lifestyles.

Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.

Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.