Nonprofit health system Advocate Aurora Health agreed to settle a proposed class action lawsuit alleging it unlawfully imposed a tobacco-use surcharge on employees enrolled in its health insurance plan. The lawsuit, filed in federal court in Illinois, claimed the health system violated federal benefits laws by charging workers an additional fee if they used tobacco without fully complying with requirements tied to wellness program incentives.
The plaintiffs argued that employees were not provided adequate alternatives to avoid the surcharge, as required under federal regulations governing employer-sponsored health plans. Terms of the settlement were not immediately disclosed in the court filing, but the agreement would resolve claims brought on behalf of affected employees and avoid further litigation.
