Progressive Beats Suit Over Health Plan Smoker, Vaccine Penalty

March 23, 2026, 4:16 PM UTC

Progressive Corp. secured dismissal of litigation challenging its practice of charging extra fees for health-care coverage to employees who smoke or who failed to receive the Covid-19 vaccine.

The proposed class action takes aim at the insurance company’s practice of imposing a $15 penalty per pay period on workers who use tobacco products, along with its prior practice of charging an extra $25 per pay period to workers who remained unvaccinated against Covid. Judge David A. Ruiz dismissed the case, saying the program complies with federal law, which doesn’t require employers to retroactively reimburse the penalties of employees who later ...

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