DOL EBSA News (ERISA / MHPAEA) · August 26, 2026 · Primary source
Trump Administration issues guidance on health-contingent wellness programs, including tobacco cessation programs
Summary
The Departments of Labor, HHS, and Treasury issued FAQ guidance on August 26, 2026, addressing health-contingent wellness programs under HIPAA and the ACA, prompted by dozens of class-action lawsuits challenging employer tobacco surcharges. The FAQs announce that the agencies will not take enforcement action against plans or issuers that provide wellness rewards only prospectively (from the point of completing a reasonable alternative standard) rather than retroactively to the start of the plan year. The guidance also clarifies that plan materials mentioning a wellness program without describing its terms do not trigger an obligation to disclose the availability of a reasonable alternative standard.
What this may mean
Group health plans and insurance issuers using health-contingent wellness programs, including tobacco surcharge programs, receive enforcement relief on retroactive reward obligations pending further rulemaking. Plans need only apply rewards prospectively once an employee completes a reasonable alternative standard, reducing potential liability in pending class-action litigation over tobacco surcharges.
Informational only. Not legal, medical, financial, or other professional advice. Always consult a qualified professional familiar with your specific facts before relying on any item.
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