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ARTICLE · 24 SEPTEMBER 2025

New Flurry Of Litigation Challenging Wellness Programs

Kutak Rock LLP
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More than one dozen class action lawsuits were filed this year challenging wellness programs that increased group health plan premiums for participants who use tobacco.

United StatesEmployment and HR
Kutak Rock
Kutak Rock

More than one dozen class action lawsuits were filed this year challenging wellness programs that increased group health plan premiums for participants who use tobacco. Employers should take steps to ensure their wellness programs are up-to-date and in compliance with federal law.

The Health Insurance Portability and Accountability Act ("HIPAA") nondiscrimination rules prohibit group health plans from charging higher premiums to participants based on any health factor unless certain exceptions are met. One exception is a compliant wellness program, which allows a plan to charge tobacco users a higher premium for their health plan as compared to non-tobacco users. This wellness program must meet specific requirements, including offering a reasonable alternative standard ("RAS") to avoid the surcharge, providing notices of the RAS, and making the full reward available if the RAS is met.

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