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Premium Surcharges and Incentives for Vaccination Status

Premium Surcharges and Incentives for Vaccination Status

1 minute read

With the FDA’s full approval to the Pfizer COVID-19 vaccine, many employers are evaluating their options regarding vaccination status within their workforce, including incentives or surcharges.

Under federal law, employers can generally provide incentives to vaccinated employees or penalize those who fail to get vaccinated (surcharges). However, this type of strategy will likely need to be structured as a group health plan wellness program. Employers will need to be familiar with the many legal requirements for wellness programs, making sure that their program is compliant.

Employers may need to make exceptions for employees who are unable to get vaccinated due to a disability or a strongly held religious belief. Treating these employees differently could potentially be discriminatory under the Americans with Disabilities Act or Title VII of the Civil Rights Act.

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This blog is intended to be a compilation of information and resources pulled from federal, state, and local agencies. This is not intended to be legal advice. For up to the minute information and guidance on COVID-19, please follow the guidelines of the Centers for Disease Control and Prevention (CDC) and your local health organizations.

National Insurance Services is not a law firm and no opinion, suggestion, or recommendation of the firm or its employees shall constitute legal advice. Readers are advised to consult with their own attorney for a determination of their legal rights, responsibilities and liabilities, including the interpretation of any statute or regulation, or its application to the readers’ business activities.

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Brock Buckellew

Brock Buckellew

Brock Buckellew believes in giving back to his community. He volunteers at several charities as well as serving his local clients with their employee benefit needs. Brock enjoys providing resources and solutions as well as establishing long lasting relationships. As Account Manager for National Insurance Services, Brock works with schools, cities, and counties in Minnesota on their health insurance, wellness plans, benefit communication, and retirement incentives. Brock has a background in employee benefit consulting and is a licensed insurance agent.