A consumer group representing older Americans has sued a federal agency on Monday alleging regulations allowing employers to promote wellness programs violate federal anti-discrimination and medical privacy laws.
The U.S. Equal Employment Opportunity Commission released final rules in May allowing employers to hit workers with substantial penalties if they refuse to participate in wellness programs and hand over sensitive medical and genetic information. But the AARP alleges those regulations violate the Americans with Disabilities Act and Genetic Information Nondiscrimination Act of 2008, and put older workers at increased risk of employment discrimination or hefty financial fines.
Under the new regulations, companies could fine employees up to 30% of their premium costs for refusing to hand over medical information in wellness program questionnaires. Couples could face a 60% premium cost fine. “On average, these penalties would double or even triple those employees' individual health insurance costs,” AARP said in its complaint in federal court in Washington, D.C.
In the past, EEOC has maintained that wellness programs were voluntary and couldn't impose hefty penalties on employees without risking their right to health privacy. Wellness programs are often used to encourage workers to lose weight, quit smoking or focus on preventative health. Many ask employees to fill out lengthy medical questionnaires, which has sparked health privacy concerns.
The AARP says the new rules mark a complete shift in the agency's mindset that ignores Congress' intent when it passed the ADA and GINA. The organization and other groups voiced their concerns when EEOC proposed the rules, but the AARP maintains the agency didn't meaningfully address those issues.
According to the lawsuit, older Americans are more likely to have or be perceived to have a disability, and they would be particularly harmed by these fines.
The rules don't go into effect until next year, and AARP has asked the federal court to throw them out entirely.
