Premium Surcharges for the Unvaccinated Are Lawful Within Limits

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​In Oct. 4 guidance, the Biden administration surprised plan administrators by announcing it would limit vaccine incentive or surcharge programs for unvaccinated health plan participants.

“The decision to treat a vaccine incentive or surcharge program as an activity-only program means that employers are now limited with respect to the level of surcharge [or incentive] that they can impose,” said Christine Keller, an attorney with Groom Law Group in Washington, D.C.

Employers that wish to impose premium surcharges will “have to develop reasonable alternatives to vaccination, which may be administratively burdensome and unworkable in practice,” she said.

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