Advocate Aurora Health employees and family members who paid a tobacco or nicotine surcharge in the company health plan between September 25, 2018 and December 31, 2025 will be paid automatically from the $8.95 million Advocate Aurora tobacco surcharge settlement if it is approved; there is no claim form to file. Objections are due January 7, 2027, and the final approval hearing is February 4, 2027.
Current Status
Advocate Aurora Health has agreed to pay $8,950,000 to settle a class action over the tobacco and nicotine surcharge in its employee health plan, and the U.S. District Court for the Northern District of Illinois has preliminarily approved the deal. There is no claim form: if the court grants final approval, checks will be mailed automatically to class members. The deadline to object is January 7, 2027, and the final approval hearing is set for February 4, 2027, at 9:15 a.m. No payment date has been announced.Free settlement alerts
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What Changed Recently?
This is a new settlement. The case, brought under the Employee Retirement Income Security Act (ERISA), challenged the tobacco and nicotine surcharge that Advocate Aurora Health charged in its employee health plan and the wellness program tied to it, including the plan’s “Healthy Breathe” tobacco cessation program. The Third Amended Complaint alleges that the company charged tobacco users a surcharge of up to $50 per paycheck (up to $1,300 a year) without running a wellness program that complied with ERISA, that participants were not given adequate notice of a reasonable alternative standard, and that they were denied the full reward federal regulations require. It also alleges that these failures were breaches of fiduciary duty.The parties reached the agreement after an all-day mediation on June 15, 2026, before retired federal judge Wayne R. Andersen of JAMS. Advocate Aurora and the other defendants deny all allegations of wrongdoing and say their conduct was lawful. Among other defenses, they argue that the program gave the full reward to participants who enrolled in Healthy Breathe, that Advocate acted as a plan sponsor rather than a fiduciary when it set premiums and surcharges, that the Supreme Court’s decision in Loper Bright Enterprises v. Raimondo undercuts the Department of Labor regulations at issue, and that the Department of Labor issued a no-action letter after auditing the program. The court has not decided who is right.
Who Qualifies?
The court preliminarily certified a settlement class of people who meet all of these conditions:- They live in the United States.
- They paid a tobacco or nicotine surcharge in connection with the Advocate Aurora Health Welfare Benefit Plan, whether for themselves or for a dependent, including a covered spouse or covered domestic partner.
- They paid it during the class period, September 25, 2018 through December 31, 2025.
How Much Can You Get?
The defendants will pay $8,950,000 into a settlement fund. Before anything is paid to class members, the fund covers:- Attorneys’ fees and costs for class counsel, capped at one-third of the fund (about $2.98 million), if the court approves them.
- Case contribution awards of up to $7,500 for each of the three class representatives.
- Settlement administration expenses.
- Fees and expenses of an independent fiduciary who reviews the deal for the plan, capped at $30,000.
Payments come by check. The settlement agreement directs the administrator to treat payments to class members as wages, except the part based on surcharges paid for a covered domestic partner, and to withhold and report accordingly. The notice says the payments may have tax consequences and that the parties’ lawyers cannot give tax advice on them. Money from checks that are not cashed within 180 days, or that cannot be delivered, goes half to the Advocate Charitable Foundation and half to the Aurora Health Care Foundation. None of it returns to Advocate Aurora.
Is There a Claim Form or Proof Requirement?
No. There is no claim form, and no receipts, pay stubs or notice ID are needed. The notice says checks will be mailed automatically to each class member’s last known address after the settlement becomes final. Payment amounts are calculated from the plan’s own surcharge records.Because checks are mailed, a current mailing address matters. The settlement website lists how to reach the administrator, Verita, about a change of address.
What Are the Deadlines?
- January 7, 2027 — deadline to object to the settlement and to file a notice of intention to appear at the hearing. Both must be filed with the court and mailed to the parties’ lawyers, postmarked by that date.
- 45 days before the hearing — class counsel files its request for attorneys’ fees and costs.
- February 4, 2027, at 9:15 a.m. — final approval hearing before U.S. District Judge LaShonda A. Hunt in Courtroom 1425 of the Dirksen U.S. Courthouse in Chicago. The court may move the date or hold the hearing remotely, and the notice says to watch the settlement website for changes.
What Are a Class Member’s Options?
Under the notice, class members who do nothing are paid automatically if the settlement is approved, and they give up the claims released in the settlement. A class member who disagrees with the settlement can file a written objection by January 7, 2027, Only a class member who files a timely objection may ask to speak at the hearing, and that request requires a separate notice of intention to appear by the same date. Objecting does not affect a class member’s payment. The objection requirements and filing instructions are in the notice on the official settlement website.What Happens Next?
The next step is the February 4, 2027 final approval hearing, where Judge Hunt will also consider class counsel’s fee request and the case contribution awards. If the court approves the settlement, payments are processed only after the appeal period ends or any appeal is resolved. The notice warns that an appeal could take a year or more. If the settlement is terminated, no payments are made and the case resumes.Sources and Verification
- Official Advocate Aurora ERISA Settlement Website (administered by Verita)
- Important Dates and Deadlines
- Settlement Documents — including the class notice and the Class Action Settlement and Release Agreement
- Notice of Class Action Settlement, Final Approval Hearing, and Motion for Attorneys’ Fees and Costs (embedded below)
- Rogers v. Advocate Aurora Health, Inc., et al., No. 1:24-cv-8864 (N.D. Ill.)
Questions
Who is included in the Advocate Aurora tobacco surcharge settlement?
U.S. residents who paid a tobacco or nicotine surcharge through the Advocate Aurora Health Welfare Benefit Plan between September 25, 2018 and December 31, 2025, whether the surcharge was for themselves or for a covered spouse or domestic partner. Advocate Aurora's named officers and directors, named plan fiduciaries, counsel for the parties and the assigned judges are excluded.
Is there a claim form for the Advocate Aurora settlement?
No. According to the court-approved notice, class members do not need to do anything to be paid. If the court grants final approval, checks will be mailed automatically to each class member's last known address after the settlement becomes final.
How are Advocate Aurora settlement payments calculated?
Under the plan of allocation, each class member's share of the net settlement fund is proportional to the net tobacco or nicotine surcharges that person paid during the class period, after subtracting any refunds, reimbursements or credits. The net fund is what remains of the $8.95 million after attorneys' fees and costs, administration expenses, independent fiduciary fees and any service awards.
Can class members opt out of the Advocate Aurora settlement?
No. The notice says that, because of the legal issues involved, class members cannot exclude themselves. Class members can object to the settlement or ask to speak at the final approval hearing. The deadline to object is January 7, 2027.
When will Advocate Aurora settlement checks be mailed?
No payment date has been announced. The final approval hearing is set for February 4, 2027. Checks go out only after final approval and the end of any appeals, and the notice warns that an appeal could take a year or more. Checks are valid for 180 days from the date they are issued.
