Scotts Miracle-Gro Co., looking for ways to hold down health insurance costs, will require workers who smoke to quit by or lose their jobs.
The lawn and garden company wants workers to live healthy lifestyles, said James Hagedorn, the company’s chairman and chief executive. Scotts recently opened a $5 million fitness and medical facility.
Scotts is joining other companies focusing on smokers to cut health insurance costs. Some companies make employees who smoke pay higher health insurance premiums, or don’t hire them.
“Why would we admit someone into this environment when they’re passing risk along to everyone else? Our view is we shouldn’t and we won’t,” Hagedorn said.
Scotts, which made $100 million on sales of $2.3 billion in its last fiscal year, has 6,000 employees in the United States and overseas. It said it could fire smokers legally in 21 states.
The company also will require higher premiums for workers who refuse to take a health survey in 2006. In 2007, premiums will rise for workers who don’t follow doctor recommendations to improve their health.
In a 2004 survey of 270 professionals, the Society for Human Resource Management found 4.4 percent preferred to not hire smokers. Fewer than one percent said their companies have a formal policy against hiring smokers.
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