COVID-19 Healthcare Surcharge

The thinking is similar to charges associated with tobacco use: Refusing to get vaccinated and contracting COVID can lead to higher health costs for the employer.

When you think surcharge, think wellness program...

The employer would have to follow the analysis for vaccine incentives, as laid out by the EEOC. If the employer is involved with vaccination, or contracts with a third party to provide the vaccine to employees, the surcharge must not be so substantial as to be “coercive,” and consideration must be given to providing accommodation to those who are unable to get vaccinated due to a disability or sincerely-held religious belief.

Additionally, a vaccine surcharge will need to be compliant with the HIPAA/ACA rules related to wellness programs. The cautious approach will be to treat the incentive as “health contingent,” which means the surcharge must be limited, and a reasonable alternative standard must be offered to those unable to get vaccinated.

Check out other items to consider when it comes to vaccines and your wellness program.

Delta Airlines Among The First to Roll Out

Delta, which self-insures its employees, stands out in its plans to raise premiums for unvaccinated workers to cover the higher costs of insuring employees who get Covid. Starting Nov. 1, unvaccinated Delta employees who have health insurance from the company will face $200 monthly surcharges. Other airlines such as Hawaiian and Alaskan are following suit.