A former employee of United Surgical Partners International filed a class-action lawsuit on May 22, alleging the ASC company violated the Employee Retirement Income Security Act by unlawfully imposing a tobacco surcharge on employees’ health insurance premiums, according to court documents reviewed by Becker’s.
What happened?
- The plaintiff, Dara Janosky, claims the surcharge discriminates based on health status, fails to comply with federal wellness program requirements under ERISA and is designed to financially benefit USPI rather than improve employee health.
- According to the complaint, the health plan did not meaningfully promote smoking cessation. Instead, it allegedly operated as a “cost-shifting mechanism” that disproportionately impacted high-risk employees — including lower-income or minority workers who are statistically more likely to use tobacco, according to the report.
- The plan imposed a flat tobacco surcharge of $58.33 per month per family (as of 2019), regardless of whether only one member of the household used tobacco, the lawsuit alleges.
- Additionally, the suit claims USPI retained the funds collected from the surcharge rather than placing them in a plan trust. This practice allegedly allowed the company to reduce its own contributions to the health plan, providing a financial benefit to USPI.
- The lawsuit argues that the surcharge functions as a penalty, not a legitimate wellness incentive. It further alleges that the program failed to offer a “reasonable alternative standard” or retroactive refunds, both of which are required under ERISA.
Becker’s reached out to USPI and will update this story if more information becomes available.
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