TAMPA, Fla. — The COVID-19 vaccine made by Pfizer, now known as Comirnaty, was greenlighted by the Food and Drug Administration for full use in the United States. The approval is paving the way for vaccine mandates.
Many colleges are charging unvaccinated students a fee to attend classes and cruise line Carnival is charging unvaccinated passengers for COVID-19 testing and requiring travel insurance policies.
As businesses weigh whether or not to mandate the vaccine, some employers are exploring the possibility of charging more money for health insurance if you're not vaccinated.
"I've had quite a few questions and I think we're going to see a lot more of them before the end of the year as employers are looking at renewing their health coverage for 2022," explained Jeff Smith, an attorney who specializes in employee benefits law.
Smith says his firm, Fisher Phillips, has received multiple inquiries from companies about the possibility of charging unvaccinated employees more for health insurance, usually in the form of an annual fee.
Smith says the reasoning behind charging unvaccinated employees a premium is to protect their workforce, "I think the main goal of most employers is to make sure their workforce is safe. Second, it's to make sure their group healthcare plan does not need to pay for COVID care, which could be prevented if employees had the vaccine."
According to a new report, the hospitalization of unvaccinated COVID-19 patients cost the U.S. healthcare system $2.3 billion in June and July of 2021. The average cost of hospitalization for one COVID-19 patient is around $20,000.
Employers hope that charging a fee for remaining unvaccinated will encourage more people to get the shot, reducing the risk of serious symptoms from the virus and some transmission.
You may be wondering, are companies allowed to do this? Smith says extra surcharges for risky health decisions aren't new and they're actually legal.
"These are called HIPAA compliant wellness programs and they have been around for quite some time. For example, many employers charge a surcharge for employees who use nicotine and those are permissible. Although, employers do have to allow exemptions for medical or religious reasons and allow an annual opportunity for employees to earn an incentive to avoid the surcharge," said Smith.
He says many companies are considering adding this fee to their health care coverage for the next enrollment period, which often begins in the fall for coverage the following year.