DOL Settlement Serves as Reminder that Tobacco Surcharges are Wellness Programs
An employer recently entered into a settlement with the Department of Labor (DOL) stemming in part from a complaint by the DOL that the employer failed to treat its tobacco surcharge as a wellness program under HIPAA’s nondiscrimination rules — i.e., failed to offer and provide notice of a reasonable alternative standard to avoid the surcharge. Tobacco surcharges are a common type of wellness program, and this settlement highlights the importance of ensuring that all applicable requirements under HIPAA (and, when medical testing or disability-related inquiries are involved, under the Americans with Disabilities Act (ADA)) are satisfied when imposing higher premiums for tobacco use. For more on compliance issues related to tobacco surcharges, Benefit Comply Clients can see white paper on our resource site.