You Paid More for Health Insurance. The Question Is Whether Your Employer Followed the Rules.
Many employees pay a “tobacco surcharge” that quietly adds hundreds, sometimes thousands, of dollars a year to their health insurance for tobacco users. Federal law only allows these surcharges under specific conditions. If those conditions weren’t met, you may have a claim.
What Is a Tobacco Surcharge?
A tobacco surcharge is an extra amount some employers add to your share of health insurance premiums if you use, or are assumed to use, tobacco. It usually shows up as a higher deduction from your paycheck.
On its own, a surcharge isn’t necessarily unlawful. The real question is whether your employer set it up the way the law requires.
When a Tobacco Surcharge May Be Unlawful
Employers are generally allowed to charge tobacco users more for health insurance, but only through a properly designed wellness program that meets federal requirements. One key requirement is a reasonable alternative: a real way to avoid the surcharge, such as a cessation program, that employees are clearly told about.
When employers skip those steps, or do not properly structure the programs, the surcharge may not comply with the law.
Could This Apply to You?
You may want a closer look if:
You were enrolled in an employer-sponsored health plan
You paid that higher amount at any point since 2020
You were charged more because of tobacco use
You were never clearly offered a way to avoid the surcharge
Why People Reach Out
Most people who contact us simply want to know whether their situation is worth a closer look. Reviewing your information is free, confidential, and comes with no obligation. If it doesn’t look like a claim, we’ll tell you.
