December 3, 2021

Delta Airlines announces $200 health premium for unvaccinated workers, and other employers are likely to follow, expert says

SAN FRANCISCO (KGO) — From vaccine mandates to incentives, employers are doing what they will to encourage staff to get vaccinated.

Delta Airlines introduced a $200 greenback monthly premium for unvaccinated staff to cowl steep COVID prices like hospitalizations.

The brand new coverage was likely pushed by insurers no lengthy providing waivers for COVID-19 remedies as firms did early within the pandemic.

“All the money that goes into healthcare is not going into their business, so it is absolutely a concern for these companies and adding on an extra several billion dollars to care for unvaccinated employees is just really not tenable,” stated Elizabeth Mitchell, Purchaser Enterprise Group on Health CEO.

Purchaser Enterprise Group on Health is a nonprofit coalition that represents personal employers and public entities navigating buying health care.

Mitchell says greater than 13 of the group’s members, together with Disney, have introduced vaccine mandates.

With the price of hospitalizations for unvaccinated COVID remedies at greater than $2 billion in June and July alone, Mitchell says she expects extra employers will observe in Delta’s footsteps.

“These companies are self-insured so they are paying these bills,” stated Mitchell. “They know that not being vaccinated and incurring unnecessary hospitalization costs is also hitting their bottom line and that comes out of wages and job growth and American families.”

VIDEO: Delta Air Traces will make unvaccinated staff pay $200 month-to-month cost

In accordance to Mitchell $200 monthly would not come shut to the total price of a median hospitalization for an unvaccinated COVID affected person, which she estimates is greater than $50,000.

“It is however an important signal that you will bear more of the cost if you choose not to become vaccinated,” stated Mitchell.

Particularly for employers or staff who could have been holding out till full FDA approval.

In a memo to staff, Delta’s CEO referenced that wait-and-see method, writing, “the time for you to get vaccinated is now.”

It is a new technique geared toward incentivizing staff who should be reluctant.

The Walt Disney Firm is the father or mother firm of ABC7 Information

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