Health Risk Classifications

The ADA generally permits employers to design and administer benefit plans on the basis of risk classification. Thus, in appropriate circumstances employers and insurers may treat individuals with disabilities differently under an insurance or benefit plan if those individuals represent an increased risk of illness or death. Differentiation may take the form of: - Refusing initially to insure; - Refusing to continue to insure; - Limiting the amount, extent, or kind of coverage available; or - Charging a different rate for the same coverage because of a physical or mental impairment.