I don't think it's the government charging more, it just happens to be the insurance company the state employees are using.
Personally, I don't think it's a bad idea. People who smoke have to generally pay higher premiums since they will eventually use more services statistically, morbidly obese people (who this targets) also will use more services. I'm sure the company is doing it to recoup it's losses, and if it's an added incentive for members to get healthier, great!
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