CVS Health (CVS) must face most of the claims in a class action challenging its policy of charging higher health-care coverage fees to employees who use tobacco products, Bloomberg Law reported Wednesday, citing court documents.
The company's rule is ambiguous because it is unclear whether the surcharge applies only to the policyholder or also to spouses, Judge Sherilyn Peace Gardner said in an order filed in the US District Court for the Central District of California, according to the report.
Employers are permitted under federal law to impose penalties on health-plan participants who smoke, the report said.
CVS didn't immediately respond to a request for comment from MT Newswires.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
Price: 81.17, Change: +1.08, Percent Change: +1.34