"The best practice is to offer rewards (such as premium reductions) on both a prospective and retroactive basis. This ensures the 'full reward' is provided to individuals who satisfy the [reasonable alternative standard (RAS)].... Ensure that annual enrollment guides adequately discuss the tobacco premium surcharge or the process for avoiding it through RAS.... Employers should remember their fiduciary duties and how they use the amounts collected by surcharge. Be sure to properly allocate the surcharge amounts toward paying claims and administrative expenses."  MORE >>