IMPORTANT INFORMATION ABOUT THE LUBRIZOL TOBACCO/NICOTINE SURCHARGE FOR 2026, AND HOW TO AVOID THE SURCHARGE THROUGH A REASONABLE ALTERNATIVE

Why does Lubrizol impose a tobacco/nicotine surcharge?

The surcharge helps to offset the additional health care costs incurred by tobacco/nicotine users. According to a recent Ohio State University study, the annual health care costs for a smoker are more than $2,000 higher than for a nonsmoker.

Lubrizol also hopes the surcharge will assist you in quitting tobacco/nicotine use by providing a reasonable alternative to the surcharge: a tobacco/nicotine cessation program, paid for entirely by Lubrizol. See below for more information on this reasonable alternative.

When does the tobacco/nicotine use surcharge apply?

The tobacco/nicotine surcharge applies if you or any covered family member age 18 or older has used tobacco/nicotine more than once in the past six months.

Does the surcharge apply to all tobacco/nicotine use or just cigarettes?

The surcharge applies to all tobacco/nicotine use — any form, such as a cigar, pipe, cigarette (including herbal), e-cigarette, vapes, or hookah, or using a smokeless tobacco/nicotine product, such as chewing tobacco or snuff.

How much is the tobacco/nicotine surcharge?

You will be assessed $35 per pay period if you or any covered family member uses tobacco/nicotine.

When and how do I certify whether anyone in my family uses tobacco/nicotine?

During each annual enrollment, you will be asked to certify whether you or any covered family member age 18 or older meets the definition of tobacco/nicotine use — meaning any tobacco/nicotine use during the prior six-month period.

Does the tobacco/nicotine surcharge apply to new hires who are enrolling in medical coverage outside of annual enrollment?

No. The tobacco/nicotine surcharge is only assessed at annual enrollment. Each annual enrollment you will have to attest as to whether or not you and/or your covered family members use tobacco/nicotine.

What programs/resources are available to help me and/or family members quit tobacco/nicotine?

One of the main reasons for the tobacco/nicotine surcharge is to encourage you and your family members to quit using tobacco/nicotine. To help you do that, Lubrizol offers the HealthyLife® QuitWell™ program free of charge to you and your eligible dependents. To access information on the tobacco/nicotine cessation program, visit Lubrizol HealthyLife® QuitWell™.

How much will it cost me and/or my family to participate in an approved tobacco/nicotine cessation program?

The Lubrizol HealthyLife® QuitWell™ program is offered free of charge to you and your covered family members.

Is there an alternative to the tobacco/nicotine surcharge? If so, what is it?

Yes. If you indicate tobacco/nicotine use during annual enrollment, Lubrizol provides a reasonable alternative to the surcharge: enrollment and engagement in tobacco cessation program, paid for entirely by Lubrizol. The reasonable alternative has two requirements, both of which must be met:

You and all covered family members who use tobacco/nicotine must enroll in HealthyLife® QuitWell™ between October 20 and December 12, 2025, and

You (and your covered members, if applicable) must complete four out of five coaching calls with your HealthyLife® QuitWell™ coach by March 31, 2026.

What if I don’t successfully stop my tobacco use, even though I met both of the steps for enrolling and engaging in the tobacco/nicotine cessation program?

Lubrizol does not require that you successfully stop using tobacco/nicotine to meet the reasonable alternative to the surcharge. You are asked only to timely enroll in the program, and to complete the required number of coaching calls by the March 31 deadline.

How do I enroll in the HealthyLife® QuitWell™ program?

Go to www.lubrizol.com/company/benefits/well-being to enroll in HealthyLife® QuitWell™.

What if I don't enroll in HealthyLife® QuitWell™ during the reasonable alternative enrollment period?

If you indicate tobacco/nicotine use during annual enrollment and don’t enroll in HealthyLife® QuitWell™ during the reasonable alternative enrollment period, the 2026 tobacco/nicotine surcharge will apply for all of 2026.

What if I enroll in HealthyLife® QuitWell™ during the reasonable alternative enrollment period, but I don’t complete my coaching calls?

The surcharge doesn’t apply for 2026 for the period you are enrolled in the tobacco cessation program. That period runs through the end of March. If you don’t (or any of your covered family members who uses tobacco/nicotine doesn’t) complete the four out of five coaching calls by March 31, 2026, the surcharge will be turned on after March 31, 2026. The surcharge will apply for the rest of the year, unless you no longer meet the tobacco/nicotine use definition as described below.

What if I quit using tobacco/nicotine during 2026? Can the surcharge be removed?

Yes, once you no longer meet the tobacco/nicotine use definition. Submit a request through MyHR to have the surcharge removed. The surcharge will be removed going forward, but no refunds will be given.

What does it mean to no longer satisfy the definition of tobacco/nicotine use?

You and your family member(s) must be tobacco/nicotine-free for six continuous months to no longer meet the tobacco/nicotine use definition. If you successfully reach a tobacco/nicotine-free status (meaning you have been tobacco/nicotine free for a six-month period), submit a benefits request through MyHR, to have the surcharge removed.

What do I need to do to have the surcharge eliminated once my family becomes tobacco/nicotine-free?

If you and/or your covered family member no longer meets the tobacco/nicotine use definition, submit a benefits request through MyHR, and the surcharge will be removed.

If the HealthyLife® QuitWell™ program isn’t right for me or my covered family member, is there another way for me to avoid the tobacco/nicotine surcharge?

If HealthyLife® QuitWell™ isn’t right for you, submit a benefits request through MyHR. We will work with you (and your doctor, if you wish) to come up with an alternative for avoiding the tobacco/nicotine surcharge that is appropriate for your circumstances.

How is the applicability of the tobacco/nicotine surcharge determined?

Whether the tobacco/nicotine surcharge applies is determined by an employee’s certification during annual enrollment and is based on the honor system. We expect employees to be truthful in the information they provide in the annual enrollment process.

Keep in mind, the plan has the right to remove a participant from coverage if the participant makes an intentional misrepresentation of a material fact to the plan. The plan will treat a misrepresentation about the applicability of the tobacco/nicotine surcharge as an intentional misrepresentation of a material fact. A participant who is removed from coverage due to misrepresentation of a material fact will not be entitled to refunds of premiums paid.

Tobacco/Nicotine Surcharge FAQ