as the employee benefit manager at immense mutinational business, you are responsible fro tying to hold down the cost of employee medical insurance while providing comprehensive quality medical care to IMB employees. Lately you have noticed that some employees, usually those who smoke, have significantly highter medical claims than nonsmokers. Studies indicate that employees who smoke a pack of cigarettes a day have claims that are 18 percent highter than those of non smikers: smokers are 29 percent more likely than nonsmokers to have annual medical claims over 5000. Estimates by the american lung association indicate that the medical benefits for smokers cost at least 1000 more per year than for nonsmokers. Based on such information, you are considering whether IMB should impose an additional annual charge of 500 for medical benefits, and insurance coverage on employees who are smokers. Would such an additional charge for smokers be legal? What arguments can you make for imposing the additional charge on smokers? What arguments can you make for not imposing the additional charge? Should IMB impose the additional charge? Explain your answers
