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Health insurance costs could rise $500 per month for smokers on Jan. 1

Some smokers could be penalized as much as $500 per month in additional health insurance premiums beginning Jan. 1, 2014, as regulations pertaining to the Affordable Care Act (ACA) are implemented.

President Obama's landmark health reform legislation allows health insurance companies to increase premiums up to 50% for health insurance policies purchased by individuals who are tobacco users.

Smokers who are covered under their employers' group plans will have the option of joining smoking cessation programs and avoiding the tobacco penalties.

The option for individuals to join such a program and avoid premium increases is not guaranteed.

Americans are required to have health insurance by Jan. 1, according to ACA. 

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Obamacare mandate may be 'mandate plus'

Can't get enough of Obamacare's individual mandate? Get ready for "mandate plus."

The Obama administration always said there was a practical reason it needed the mandate, which starts next year. It wasn't to be mean to people - it was supposed to pull in enough healthy customers to help pay for all the sick people who will get coverage. That's why the White House stuck with it all the way to the Supreme Court - however unpopular politically, it was the best tool to make the new health system work. Here's the catch: The individual mandate penalties will be pretty weak as they are phased in over two years - only $95 when they start in 2014, much less than it costs to buy insurance. And yet, everyone with pre-existing conditions will have to be accepted for coverage right away.

That's why insurance companies are telling the administration the mandate won't be enough for the first two years. They want more incentives - such as a late enrollment fee - to get healthy people to sign up quickly. Without getting the healthy folks in, the fear is that everyone's health insurance premiums could shoot through the roof when all those sick people get their coverage.