Between June and July 2021, the U.S. government spent about $2.3 billion on COVID-19 hospitalizations for unvaccinated adults. Moreover, prior to the development of a COVID-19 vaccine, most health insurance policies were covering a portion of the healthcare costs related to COVID-19 hospitalization. However, with the availability of the COVID-19 vaccine and the rollout of nationwide vaccination programs, many insurers have phased out the cost-sharing waivers, shifting the financial burden back to the patients and employers. With the Delta variant posing a major risk, employers may have to devise ways of cutting their costs. Since unvaccinated people are more vulnerable to the virus, insurance companies will likely view them as high-risk, and therefore, charge them higher health insurance premiums. Here is more information about this topic.
Why Employers May Hike Health Insurance Premiums
Employers who offer group insurance coverage for their employees will likely incur huge costs if their workers were to be hospitalized for COVID-19. This can be worse in case a larger portion of the workforce is not vaccinated. To compel more employees to get vaccinated, employers may shift part of the burden to their employees by increasing their health insurance premiums. This means that unvaccinated employees would end up paying higher health insurance premiums because they are at a higher risk of hospitalization than their vaccinated counterparts. This gives rise to another controversial topic – discrimination. For some time now, Republican lawmakers have been pushing bills aimed at banning discrimination against unvaccinated people. If legislation is passed, employers may be prohibited from increasing health insurance costs for their unvaccinated employees.
Can Employers Increase Insurance Costs for the Unvaccinated?
The simple answer is no. Even though they may feel the pinch of paying huge healthcare costs, employers do not have the right to increase health insurance costs for their unvaccinated employees. This is partly due to the discrimination concerns that may arise. For instance, the Health Insurance Portability and Accountability Act of 1996 (HIPAA) prohibits insurance providers, and hence, in this case, employers, from discriminating against employees for insurance coverage based on health-related factors. Some employers have made it mandatory for their employees to get vaccinated, even going to the lengths of terminating those who refuse. While this is clearly not right, employers also have an obligation to ensure workplace safety for their employees. It is worth noting that other than just keeping insurance costs low, mandating vaccination at the workplace is also a way of protecting the workplace from COVID-19.
Expert Suggestions for Employers
Considering increasing health insurance costs for unvaccinated employees may not be a viable option, employers need to come up with better ways to address this issue and lower their financial burden. For instance, employers can implement incentives and surcharges through their wellness programs, provided they don’t discriminate against employees based on their health status. Through such programs, they’ll also be able to create awareness on the importance of getting vaccinated as well as encourage their employees to adopt healthy lifestyles that would reduce the risk of hospitalization due to the pandemic. Additionally, instead of hiking premiums for unvaccinated employees, employers can opt to subsidize premiums for any employee who gets vaccinated. This will likely encourage more employees to embrace vaccination without feeling discriminated against.
Despite the controversy surrounding getting vaccinated, some health insurers may increase health insurance costs for the unvaccinated. To get a health insurance plan that suits your needs, contact the experts at Donald Weiss Insurance Services. Our dedicated team is ready to assist you with all your insurance needs.