[dispose13432]

>Is he paying $50 more for not participating, or getting a $50 discount for participating?

On the other hand, think about it like this:

What if insurance costs $10,000 a month, with a $9900 discount for "healthy behavior", so your average person pays $100 a month.

It's a great deal.

Now what happens if someone gets sick and can't upkeep his healthy behavior?

He loses his insurance.

This defeats the purpose of health insurance, but most people tend not to think of long-term repercussions.