"It’s one thing when your insurance company asks if you smoke. It’s another when it’s a government condition for using the health exchange."
I guess that's the difference between a Liberal and a conservative. Personally, I don't mind giving the government information I would never give to a private individual or organization. So you object to the government collecting that information, but not it passing it on to a private firm bidding for your business through the exchange.
Strictly speaking, doesn't the smoker info simply mean that it is information that will be made availble to the companies in the exchange, as opposed to a precondition to using the exchange? There is a big difference. I can see smokers paying higher premiums, but not being denied insurance altogether. Sounds too much like "death panels" to me.