Migliaccio & Rathod LLP is investigating whether Beacon Mobility’s employee health plan administers tobacco-related health insurance surcharges in compliance with the Employee Retirement Income Security Act (“ERISA”) and federal wellness program regulations.
Federal regulations generally permit employers to impose tobacco-related health insurance surcharges through outcome-based wellness programs, but they also require employees who do not satisfy the tobacco-free standard to be offered a reasonable alternative standard (“RAS”) for earning the full premium discount.
According to publicly available 2026 benefits materials, Beacon Mobility imposes a tobacco-related premium surcharge and requires employees to complete certain wellness requirements to avoid or remove the surcharge. The publicly available materials raise questions regarding whether employees are clearly informed of all reasonable alternative standards, physician accommodations, applicable deadlines, and procedures for obtaining reimbursement of previously paid surcharges, as contemplated by federal wellness program regulations.
What Employees Report
Employees report:
- Paying tobacco-related health insurance surcharges.
- Receiving limited information regarding how to eliminate the surcharge.
- Participating in tobacco cessation efforts without understanding whether they qualified for the full premium discount.
- Uncertainty regarding physician accommodations or other reasonable alternatives.
- Continuing to pay increased premiums despite attempting to comply with program requirements.
- Difficulty determining whether previously paid surcharges could be refunded.
Why Employees Should Be Concerned
Federal wellness program regulations generally require employees who do not satisfy a tobacco-free standard to have a meaningful opportunity to earn the full premium reward through a reasonable alternative standard.
If employees are not clearly informed of available alternatives, applicable deadlines, physician accommodations, or refund procedures, they may pay substantially higher health insurance premiums than federal law permits.
This investigation seeks to determine whether Beacon Mobility properly administered its tobacco surcharge program and whether affected employees paid tobacco-related premium surcharges that should not have been assessed.
Potential Claims May Include
- ERISA Violations
- Failure to Provide a Reasonable Alternative Standard
- Improper Wellness Program Administration
- Breach of Fiduciary Duty
- Recovery of Improperly Assessed Tobacco Surcharges
- Declaratory and Injunctive Relief
Signs You May Be Affected
You may be affected if:
- You participated in Beacon Mobility’s employee health plan.
- You paid a tobacco-related premium surcharge.
- You participated in a tobacco cessation program or wellness activity.
- You were not clearly informed about reasonable alternatives or physician accommodations.
- You continued paying the surcharge despite attempting to satisfy the program requirements.
- You still possess payroll records, enrollment materials, or benefits communications regarding the surcharge.
If you believe you encountered these issues, we would like to hear from you. Please complete the contact form on this page, send us an email at [email protected], or give us a call at (202) 470-3520.