Tobacco Surcharge Suits Spotlight Wellness Reg Compliance

From the Affordable Care Act Section 1557 final rules to the latest mental health parity regulations, this year has seen no shortage of challenges for sponsors of employee benefit plans.

Despite these new developments, one of 2024's most unexpected issues for plan sponsors arises out of a decidedly old-school design: tobacco-user surcharges. Over the last year, plan participants have filed multiple class action complaints alleging that tobacco-user surcharges amount to illegal discrimination based on a participant's health status.

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