Some employers may tack on health coverage surcharges for employees who don’t plan to get fully vaccinated against COVID-19, according to an Aug. 5 blog post from Mercer, an asset management firm.

The blog post likened the health insurance surcharge for unvaccinated employees to those for tobacco users. The idea is if an employee contracts COVID-19, it could lead to higher healthcare costs for the employer and raise premiums down the road.

“The surcharge approach is intended to cause employees to change behavior voluntarily” and may be seen as “less draconian than a vaccine mandate,” according to the blog post.

However, employers should be aware of compliance issues, including those related to HIPAA and ACA regulations, according to the blog post.

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Written by: Morgan Haefner

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