A monthly salary deduction of $ 50 from your employer

Employers are starting to add a special surcharge of $ 20 to $ 50 per month to their unvaccinated workers, according to one of the nation’s largest health benefits consulting firms.

To date, employers have offered gift cards, a day off, cash and other financial incentives to convince their workers to get vaccinated against Covid-19.

But the carrot approach is about to be joined by a stick that could cost employees as much as $ 50 a month, according to Mercer, the large benefits consulting firm that works with thousands of employers. in the world.

“Employers have tried to encourage employees to get vaccinated by offering incentives like paid time off and cash, but with the Delta variant increasing infections and hospitalizations across the country – along with vaccination rates have stalled – we have received requests from at least 20 employers in the past few weeks considering adding health coverage supplements for unvaccinated people to increase vaccination rates in their workforce Said Wade Symons, group manager of regulatory resources at Mercer.

Mercer is not disclosing the names of the companies working on the surtaxes, but said the amount of the surtax being discussed with these employers is akin to the $ 20 to $ 50 per month fee that companies already charge workers who smoke.

Beyond a public health reason to encourage vaccination and keep workers and their families healthy, there is also a financial reason. Covid-19 can lead to serious illness and an expensive hospital stay that costs the worker and the insurance paid for by the company, also triggering premium increases.

An essay in the New York Times last week described several examples of how Covid-19 can drive up health insurance costs and premiums for the unvaccinated. “Being hospitalized with Covid-19 in the United States usually generates huge bills,” wrote Dr Elisabeth Rosenthal and Glenn Kramon of Stanford University, citing examples that included “a bill of $ 104,000 for a hospitalization of 14 days in Miami for an uninsured person “.

Although premium increases are only just beginning to be considered, financial incentives are already being used by some employers. Mercer’s data from a survey last month of more than 300 employers shows that “only 10% offer a financial incentive, although 19% offer additional paid time off as a reward,” Mercer said in a statement. “Some employers are now offering extra time off so employees can help get their children immunized. “

Benefits consultants find that pressure from employers to get their workers vaccinated only intensifies as employees return to the office after 18 months of remote work.

“Last week, a few big names, including Google and Facebook, announced their intention to require all employees to be vaccinated against COVID-19 before returning to the office,” Mercer’s Symons wrote in a column last week. on the benefit company’s website. “And, while many employers are prepared to take additional steps to increase vaccine levels, most employers continue to suspend mandates due to the potential employee relations issues such a move could cause. Now, with the Delta variant increasing infections and hospitalizations across the country – at the same time as vaccination rates have stalled – health coverage supplements for the unvaccinated are a tactic employers are considering as an alternative to a warrant. “

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