Arthur J Gallagher Health Plan Smoker Fee Challenged in New Suit

An Arthur J. Gallagher & Co. subsidiary was hit with a proposed class action targeting its alleged practice of charging employees who smoke an extra $1,895 for health-care coverage.

The lawsuit, filed Wednesday in the US District Court for the Northern District of Illinois, accuses the insurance and risk management firm of running an unlawful employee wellness program by failing to provide tobacco-using workers with a valid way to have the challenged penalties waived. Plaintiff Debbora Lockyer says Gallagher offers a quit-smoking program as a way to avoid the charges, but the company fails to appropriately publicize the program ...