Advocate Aurora Health $8.95M Tobacco Surcharge Settlement, Who Qualifies, Automatic Payments and the January 7, 2027 Deadline

Advocate Aurora Health, Inc. has agreed to an $8,950,000 class action settlement over claims that employees and covered family members paid unlawful tobacco or nicotine surcharges through the Advocate Aurora Health welfare benefit plan. If you paid a tobacco or nicotine surcharge under that plan between September 25, 2018, and December 31, 2025, you may receive a check automatically. There is no claim form.

The settlement could benefit about 41,000 people. Each person’s payment depends on how much they paid in net surcharges, after court-approved fees, awards and administration costs.

The objection deadline is January 7, 2027, and the final approval hearing is February 4, 2027, at 9:15 a.m. Central Time. You cannot opt out.

The settlement resolves Rogers, et al. v. Advocate Aurora Health, Inc., Case No. 1:24-cv-08864, in the U.S. District Court for the Northern District of Illinois, before Judge LaShonda A. Hunt. Advocate Aurora denies violating federal law. The court has granted preliminary approval, but final approval and payments are still pending.

Official settlement website: AAHERISASettlement.com

Advocate Aurora Health Settlement: Quick Facts

Detail	Verified information
Settlement amount	$8,950,000
Defendant	Advocate Aurora Health, Inc. and related plan committees
Lawsuit	Rogers, et al. v. Advocate Aurora Health, Inc.
Case number	1:24-cv-08864
Court	U.S. District Court, Northern District of Illinois
Judge	LaShonda A. Hunt
Class representatives	Kelly Rogers, Kathryn Deisinger O’Flaherty and Wyndham Hasler
Estimated class size	About 41,000 people
Eligibility period	September 25, 2018 to December 31, 2025
Alleged surcharge	Up to $50 per paycheck, about $1,300 a year
Payment amount	Pro-rata share based on net surcharges paid
Claim form required?	No
Payment method	Automatic mailed check
Can class members opt out?	No (mandatory class)
Objection deadline	January 7, 2027
Final approval hearing	February 4, 2027, 9:15 a.m. Central
Official settlement website	AAHERISASettlement.com
Settlement administrator	Verita
Administrator phone	1-888-808-2754
Status	Preliminary approval granted; final approval pending

Who Qualifies for the Advocate Aurora Health Settlement?

You must meet all three requirements from the official notice:

1. You live in the United States.
2. You paid a tobacco or nicotine surcharge in connection with the Advocate Aurora Health Welfare Benefit Plan, for yourself or a covered dependent, including a spouse or domestic partner.
3. You paid that surcharge at some point between September 25, 2018, and December 31, 2025.

The class excludes certain officers, directors and plan fiduciaries, counsel for the parties, and federal judicial personnel assigned to the case.

Do former Advocate Aurora employees qualify?

Potentially, yes. You do not need to still work there. A former employee who paid qualifying surcharges during the period may receive a payment.

What if the surcharge was for your spouse or domestic partner?

You may still qualify. The class definition includes charges paid for covered spouses and domestic partners, and the allocation generally counts the combined net amount you paid.

What if you never used tobacco?

Not using tobacco does not by itself decide eligibility. What matters is whether you actually paid a qualifying surcharge, including one tied to a covered family member. Being enrolled in the plan is not enough if no surcharge was paid.

How Much Will Advocate Aurora Health Settlement Members Receive?

There is no flat $100, $500 or $1,300 payment. Your share depends on the net tobacco or nicotine surcharges you paid during the class period, based on employer plan records.

How the payment formula works

1. The administrator totals the surcharges each class member paid from September 25, 2018, through December 31, 2025.
2. It subtracts refunds, reimbursements or credits already given.
3. It divides the net settlement fund in proportion to each person’s share of all qualifying net surcharges.

Payment before withholding = (your net surcharges ÷ all class members’ net surcharges) × net settlement fund

Someone who paid twice as much in net surcharges as another member would ordinarily receive about twice as much. That explains the method. It is not an estimate of your payment.

How much of the $8.95 million actually reaches class members?

Item	Amount
Gross settlement	$8,950,000
Attorneys’ fees and costs (maximum request)	$2,983,333 (one-third)
Class representative awards (maximum)	22,500(7,500 each for three representatives)
Fund after those two items	About $5,944,167
Independent fiduciary and administration costs	Subtracted from the remainder; amount not stated here

Spread over about 41,000 people, $5.94 million works out to roughly $145 on average before administration costs. That is my arithmetic to show scale, not an official figure. Real payments will vary widely with what each person paid, and the fees and awards are subject to court approval.

No full reimbursement is guaranteed. The final amounts depend on total qualifying surcharges, court-approved deductions and tax treatment.

Do You Need to File a Claim for the Advocate Aurora Health Settlement?

No. There is no online or paper claim form. Eligible class members will be paid automatically after final approval, using existing plan data to identify members and calculate payments. You do not need to upload pay records, send receipts, or pay anyone to sign you up. Verifying your mailing address is the one thing to do.

What if you moved or left Advocate Aurora Health?

Checks go to last known addresses. If you moved, ask the administrator to update your address.

Rogers v. Advocate Aurora Health P.O. Box 301130 Los Angeles, CA 90030-1130 Phone: 1-888-808-2754 Website: AAHERISASettlement.com

Follow the administrator’s identity-verification instructions, and do not send Social Security or bank details to unsolicited emails or social-media accounts.

What if you never received a settlement notice?

Contact the administrator and ask whether its records show you paid qualifying surcharges. Eligibility depends on actual qualifying payments, not on getting a postcard.

Why Did Employees Sue Advocate Aurora Health Under ERISA?

Former employees sued in 2024 over tobacco-related charges in the company’s health program. They alleged Advocate Aurora charged tobacco surcharges of up to $50 per paycheck, which for someone paid 26 times a year is as much as $1,300 in extra yearly premiums. The complaint challenged how the wellness program, including a tobacco-cessation initiative called Healthy Breathe, was designed and run.

What did the Advocate Aurora Health plaintiffs say was wrong with Healthy Breathe?

They alleged workers were not adequately told about reasonable alternatives for avoiding the surcharge, and that people who completed a qualifying alternative should have received the full wellness reward federal rules require. They also alleged the practices let the employer lower its own contributions to the plan at participants’ expense, and they sought financial and equitable relief for the plan and affected employees under ERISA.

Did Advocate Aurora Health admit wrongdoing?

No. The agreement says the defendants deny the allegations and maintain that the program complied with the law. Their defenses include that participants could earn the full reward by timely enrolling in Healthy Breathe, that disclosures were adequate, and that the employer acted as a plan sponsor, not a fiduciary, when it set certain premiums. The agreement also mentions a Department of Labor no-action letter after an audit.

The settlement is a negotiated resolution, not a finding that the surcharges were unlawful.

What Laws Apply to the Advocate Aurora Health Tobacco Surcharge Settlement?

ERISA fiduciary duties and remedies (29 U.S.C. §§ 1104, 1132)

The plaintiffs sued under ERISA § 502(a)(2) and (a)(3) (29 U.S.C. § 1132(a)(2) and (a)(3)), which cover relief for fiduciary breaches and equitable remedies. Fiduciary duties of prudence and loyalty come from 29 U.S.C. § 1104(a)(1). Relief under § 1132(a)(2) is generally paid to the plan, which is why class members’ shares are calculated from plan records.

Not every plan-design decision is a fiduciary act. Courts separate decisions made as a plan sponsor from decisions made as a fiduciary administering the plan, and that was one of Advocate Aurora’s stated defenses.

Health plan nondiscrimination and wellness rules (HIPAA/ACA, 29 C.F.R. § 2590.702(f))

Federal law bars group health plans from charging similarly situated individuals different premiums based on a health factor, with an exception for qualifying wellness programs. Under 29 C.F.R. § 2590.702(f), an outcome-based program must give eligible people a reasonable alternative standard, follow the incentive limits, and meet notice and other conditions. For tobacco-related programs the incentive may reach 50% of the cost of coverage, otherwise 30%. A reasonable alternative can be completing a cessation program rather than actually quitting.

The matching Treasury and HHS rules are at 26 C.F.R. § 54.9802-1(f) and 45 C.F.R. § 146.121(f). Together with the underlying statute (42 U.S.C. § 300gg-4), they set the standards plaintiffs say Advocate Aurora missed.

For a broader explanation, see Employer Tobacco Surcharge on Health Insurance, Is It Legal, What Are Your Rights, and Can You Fight Back? 2026.

ERISA statute of limitations (29 U.S.C. § 1113)

ERISA fiduciary-breach claims generally must be brought within six years of the breach, or three years after the plaintiff had actual knowledge. The case number shows a 2024 filing, and the class period reaching back to September 25, 2018 is consistent with that six-year rule. That is my inference from the dates, not something the settlement documents say.

Federal Rule of Civil Procedure 23(b)(1) and 23(e)

A class under Rule 23(b)(1) is a mandatory class, which is why you cannot opt out. Rule 23(e) requires court approval of a class settlement after notice and a hearing, and requires the judge to find it fair, reasonable and adequate. Class members can object under Rule 23(e)(5). That is the purpose of the February 4, 2027 hearing.

Class Action Fairness Act notice (28 U.S.C. § 1715)

Defendants in a proposed class settlement must notify the appropriate federal and state officials, which gives regulators a chance to review it.

The Department of Labor’s August 26, 2026 policy change

On August 26, 2026, the Departments of Labor, Treasury and Health and Human Services issued guidance on health-contingent wellness programs. Until further guidance or rules, the agencies said they would not take enforcement action against a qualifying plan solely for failing to apply a reward retroactively to the start of the plan year after an employee completes a reasonable alternative. They also said materials that only mention a wellness program, without describing its terms, do not trigger the same disclosure requirements as materials that describe how it works.

This is an enforcement policy. It does not decide the private claims in Rogers or remove the need to look at ERISA, the regulations and court decisions. Older articles that suggest retroactive refunds are always required may now be too categorical.

Source: U.S. Department of Labor, August 26, 2026

Is It Illegal for Employers Like Advocate Aurora Health to Charge More for Tobacco Use?

Not automatically. Federal law lets qualifying employer health plans use tobacco-related wellness incentives and surcharges if the nondiscrimination requirements above are met. Whether a given plan did so depends on its structure and notices.

For a separate employer tobacco-surcharge dispute, see JPMorgan Class Action Lawsuit, Alleges Tobacco Surcharges Violate ERISA, What Employees Should Know About the $80 Monthly Charge. It involves different employees, a different plan and separate proceedings.

Can You Opt Out of the Advocate Aurora Health Settlement?

No. The court preliminarily certified a mandatory settlement class under Rule 23(b)(1). In many consumer settlements you can exclude yourself and keep the right to sue, but not here. If the settlement receives final approval, class members are generally bound by the judgment and the release of the covered claims.

How can you object to the Advocate Aurora Health settlement?

You can object by January 7, 2027. The objection must identify the case, give your contact information, explain why you object and include everything else the official notice requires. File it with the federal court and mail copies to the designated lawyers for both sides. The notice lists the exact addresses.

Read the full court-authorized notice.

Can you speak at the final approval hearing?

Possibly, if you first file a timely objection and the required Notice of Intention to Appear by January 7. Simply showing up does not let you address the court. Objecting does not by itself cancel your right to a payment.

When Will Advocate Aurora Health Settlement Checks Be Mailed?

The final approval hearing is set for February 4, 2027, at 9:15 a.m. Central Time at:

Everett McKinley Dirksen United States Courthouse Courtroom 1425 219 South Dearborn Street Chicago, IL 60604

Judge LaShonda A. Hunt will consider whether the settlement is fair, and will rule on the requested fees and awards. If she approves, payments follow after the settlement becomes final and any appeals are resolved. No mailing date has been announced. The official notice warns that an appeal could delay things by a year or more.

How long are the checks valid?

Checks are valid for 180 calendar days after issuance, so deposit them promptly. Money from uncashed checks or undeliverable payments is divided between Advocate Charitable Foundation and Aurora Health Care Foundation and does not go back to the defendants.

Will Your Advocate Aurora Health Settlement Payment Be Taxable?

Possibly. Under the agreement, the administrator generally treats payments as wages for distribution and withholding, except the portion tied to surcharges paid for a covered domestic partner. Taxes may be withheld before the check is issued, so the amount you deposit can be lower than your calculated share. The administrator will do the tax reporting the law requires. For your own situation, ask a qualified tax adviser, because the administrator and settlement lawyers cannot give personal tax advice.

How Is Advocate Aurora Health’s Tobacco Surcharge Settlement Different From Its Other Class Actions?

Advocate Aurora has faced other kinds of litigation. For example, claims about online patient-tracking technology are covered in MyChart Class Action Lawsuit Claim & Settlement Alert, Claim Your Cash Before Deadlines Expire—Up to $35+ Per Patient (Multiple Settlements Available). Those privacy cases are separate from this ERISA settlement. Being an Advocate Aurora patient does not make you eligible here.

Frequently Asked Questions About the Advocate Aurora Health Settlement

Is the $8.95 million Advocate Aurora Health settlement legitimate?

Yes. The agreement and court-authorized notice are posted at AAHERISASettlement.com, and the federal court has granted preliminary approval.

Who qualifies for the Advocate Aurora Health settlement?

U.S. residents who paid tobacco or nicotine surcharges through the Advocate Aurora Health Welfare Benefit Plan between September 25, 2018, and December 31, 2025, subject to the exclusions.

Do former Advocate Aurora employees qualify?

Yes, if they meet the eligibility requirements.

Is there an Advocate Aurora settlement claim form?

No. The administrator calculates payments from plan records and mails checks automatically.

How much will each person receive?

That is not known yet. Payments are proportional to net surcharges paid and depend on what remains in the fund.

Will everyone get $1,300?

No. $1,300 is the maximum yearly surcharge described in the complaint, not an approved payment.

What if I paid surcharges for my spouse or domestic partner?

Qualifying surcharges for a covered spouse or domestic partner can count toward your allocation.

Can I opt out?

No. The notice identifies this as a mandatory class settlement.

What is the objection deadline?

January 7, 2027.

When is final approval scheduled?

February 4, 2027, at 9:15 a.m. Central Time.

When will checks arrive?

After final approval and any appeals. No date has been announced.

Is the settlement payment taxable?

It may be. The agreement generally calls for wage treatment and withholding, with an exception for domestic-partner surcharges.

Bottom Line

The $8.95 million Advocate Aurora Health tobacco surcharge settlement offers automatic payments to about 41,000 health-plan participants who paid tobacco or nicotine surcharges between September 2018 and December 2025. The defining features are no claim form, no opt-out, payments based on actual net surcharges, and a January 7, 2027 objection deadline. The court will consider final approval on February 4, 2027, and no money moves until the settlement is final. If you moved since working for Advocate Aurora, contact the administrator so your check reaches the right address.

Sources and Official Documents

• Advocate Aurora Health Settlement: Official Settlement Website
• Official Frequently Asked Questions
• Settlement Agreement and Court Documents
• Official Long-Form Notice (PDF)
• Full Signed Settlement Agreement (PDF)
• Important Dates and Deadlines
• Settlement Administrator Contact Information
• 29 C.F.R. § 2590.702: Health Plan Nondiscrimination and Wellness Rules
• U.S. Department of Labor: August 26, 2026 Wellness Program Guidance

Disclaimer: This is general legal information, not legal or tax advice. The settlement is proposed and awaits final court approval, and the official agreement controls eligibility, payments and legal rights.

Researched and written by Israr Ahmad, legal content researcher and founder of AllAboutLawyer.com. All facts verified against the official Long-Form Notice, Settlement Agreement, FAQ and important dates on the settlement website run by the administrator (AAHERISASettlement.com), and the cited federal regulations and Department of Labor release, as of November 13, 2026. Last Updated: November 13, 2026.