Hausmann Group September 22, 2021 2 min read

Premium Surcharges for Nonvaccinated Individuals

On Aug. 23, 2021, the Food and Drug Administration (FDA) gave full approval to the Pfizer-BioNTech COVID-19 vaccine (now marketed as Comirnaty) for individuals 16 years of age and older. As a result, many employers are exploring options related to COVID-19 vaccination status within their workforce, including whether to charge a premium surcharge for nonvaccinated individuals.

There are a number of legal considerations to take into account when determining whether to impose a premium surcharge (or offer an incentive) based on vaccination status. Subject to any specific state laws prohibiting this practice, employers may generally provide incentives to employees for receiving the COVID-19 vaccine (or penalize employees for failing to get vaccinated). However, this would likely need to be structured as a group health plan wellness program under existing law.

Click here to read the full Compliance Bulletin which provides an overview of the various compliance concerns for implementing a wellness program related to COVID-19 vaccination status.



Want to learn more? Watch our on-demand webinar: Can Employers Apply Premium Surcharges or Incentives for Vaccinations?