Aurora Health Seeks Dismissal of Nicotine Surcharge Lawsuit

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Aurora Health Nicotine Surcharge Suit

Advocate Aurora Health is urging an Illinois federal judge to permanently dismiss a lawsuit filed by former employees over an alleged illegal tobacco-use surcharge in its health plan. The nonprofit health system argues that after three attempts, the plaintiffs have failed to present a viable claim under the Employee Retirement Income Security Act (ERISA), according to its motion filed Thursday.

The Tobacco Surcharge and ERISA Claims

The former employees contend that Advocate Aurora’s tobacco cessation program violates ERISA’s anti-discrimination provisions, alleging it unfairly penalizes employees based on health status. Specifically, they claim the program’s rules are overly strict and do not offer reimbursements for months when late enrollees had already paid the surcharge.

Advocate counters that the program complies fully with ERISA regulations. It provides a reasonable alternative to avoid the surcharge—a requirement under the law—through its Healthy Breathe Program, which participants can join in January each year. Late enrollees are allowed to enter mid-year and receive pro-rated benefits to avoid the surcharge moving forward, which Advocate argues exceeds ERISA’s requirements.