Published
September 16, 2025
Updated
July 27, 2026
This page tracks an open investigation into the extra health-insurance fees some employers charge workers who smoke or vape, often called smoker or nicotine surcharges. No lawsuit or settlement has been announced here, so there is nothing to file — what follows is what the rules allow, which states restrict surcharges, and what records are worth keeping.
Current Status
This is an open investigation, not a settlement. No class action complaint, proposed settlement, claim form or court-approved claim deadline is associated with this page as of July 27, 2026, so there is nothing to file and no payout to claim. The investigation looks at whether employer health-plan smoker and nicotine surcharges were applied consistently with the Affordable Care Act's wellness program rules, plan terms and state law. If a case is filed or a settlement is reached, this page will be updated with the actual filing path.StatusOpen InvestigationNo lawsuit or settlement announced on this page.
Claim DeadlineNoneNo claim process exists yet.
Potential CompensationUnknownNothing is available unless a case is filed and resolved. No payout is guaranteed.
Proof RequiredNot applicableNothing to submit — keep pay stubs and benefits statements in case a claim process opens.
What Is a Smoker or Nicotine Surcharge?
Many employer-sponsored health plans charge employees who use tobacco or nicotine products a higher premium than non-users, or offer non-users a discount that amounts to the same thing. The charge usually shows up as a separate line on a pay stub or benefits statement, or simply as a higher monthly premium. The question this investigation examines is not whether such surcharges exist, but whether particular ones satisfied the legal conditions attached to them.Can Employers Charge Higher Health Fees for Smokers or Vapers?
Under federal law an employer-sponsored plan may charge tobacco users more, but only within limits. The Affordable Care Act permits a tobacco surcharge of up to 50 percent of the cost of coverage. Some states impose stricter rules, and some prohibit the practice outright.When Is a Smoker Surcharge Lawful Under Federal Law?
A tobacco surcharge is treated as a health-contingent wellness program, so it has to comply with the ACA's wellness program provisions. Among other requirements, the plan must offer a reasonable alternative standard — for example a cessation program, counseling or nicotine replacement therapy — that lets an employee avoid the surcharge without quitting outright, and it must tell employees that the alternative is available. A surcharge imposed without a properly offered and communicated alternative is where disputes typically arise.Do Wellness Programs Permit Nicotine Testing?
Many employer wellness programs use nicotine or cotinine testing, or a signed attestation, to determine whether an employee uses tobacco. Where a plan charges a surcharge or offers a non-smoker discount, employees must still be given the chance to qualify for the lower rate by completing a reasonable alternative program.Do Any States Limit Smoker Surcharges?
Several states restrict or prohibit tobacco surcharges on health insurance, including California, New York, New Jersey, Massachusetts, Vermont, Rhode Island and the District of Columbia. In those jurisdictions, employers and insurers generally cannot charge higher premiums based solely on tobacco use. State rules change, so the controlling law is whatever is in effect in your state for the plan year at issue.How Do I Know If I Was Charged a Surcharge?
Check your pay stubs, health plan enrollment forms and benefits statements for a line item such as "tobacco surcharge" or "nicotine surcharge." Sometimes the charge is not itemized and simply appears as a higher monthly premium than non-smoking colleagues pay. HR or benefits emails and the plan's summary of benefits often explain when and why the surcharge was applied, and whether an alternative program was offered.What Should I Keep?
There is nothing to submit right now. If you want to be ready in case a claim process opens later, hold on to pay stubs or benefits statements showing the surcharge, your health plan enrollment documents and summary of benefits, any HR or benefits correspondence about the surcharge or a cessation alternative, and your dates of employment and coverage.A Related Case That Is Already Settled
Employees at Casey's General Stores brought an ERISA class action over a tobacco surcharge that reached a $5.1 million settlement paying plan members automatically. That case shows the shape this kind of claim takes when it is actually filed, and it is a useful comparison point while this investigation remains open.Sources
• Affordable Care Act Implementation FAQs — CMS• State Policies Limiting Premium Surcharges for Tobacco — NCBI/PMC
• American Lung Association — Tobacco Cessation Treatment: What Is Covered?
For more class actions keep scrolling below.
Status
Open Investigation — no lawsuit or settlement announced
Claim Deadline
None at this time
Who May Be Affected
U.S. employees who paid an employer health-plan tobacco or nicotine surcharge
Legal Framework
ACA wellness program rules, ERISA and state insurance law
What To Keep
Pay stubs or benefits statements showing the surcharge, plan documents, HR correspondence
