Delta Adds $200 Monthly Health Insurance for Unvaccinated Personnel

CHICAGO (Reuters) – Delta Air Lines said on Wednesday that employees will have to pay $200 more each month for their company-sponsored health care plan if they choose not to vaccinate against COVID-19.

The move to add a surcharge to health insurance premiums is corporate America’s latest tactic to get workers a chance to fight the pandemic.

A number of US companies, including Delta competitor United Airlines, have mandated shots to their employees to protect their operations from the highly contagious Delta strain of the coronavirus, which has affected parts of the country with lower vaccination levels.

President Joe Biden has also urged private companies to require workers to be vaccinated.

In a staff note, Chief Executive Ed Bastian said the monthly allowance would come into effect on Nov. 1 (https://bit.ly/3ybiWzW)

Bastian said the surcharge is needed to address the financial risk faced by the Atlanta-based airline as a result of its decision not to vaccinate.

A Delta Air spokesperson said the average hospitalization rate for COVID-19 has cost the company $40,000 per person. The surcharge would apply to the entire workforce and proof or documentation of vaccination is needed to prevent this, the spokesperson said.

Chris Riggins, spokesman for the Air Line Pilots Association at Delta, said the union has no intention of opposing the proposed surcharge because it will not affect the care plan it has negotiated with the airline for its members.

But since most pilots are not covered by the union-negotiated plan, Riggins said they would see an increase in their health care costs if they decide to go unvaccinated.

In the memo, Bastian said 75% of Delta Air’s staff have been vaccinated. However, all workers hospitalized with COVID-19 in recent weeks were not fully vaccinated, he said.

Although Delta had declined to mandate the injections for its employees, the latest move contrasted sharply with policies being pursued by rivals such as American Airlines and Southwest Airlines, which “strongly encourage” their employees to get vaccinated.

American Airlines is offering vaccinated employees an additional day off in 2022 and $50 through its employee recognition platform.

Bastian said unvaccinated Delta employees must wear masks in all indoor environments with immediate effect.

Any employee in the United States who is not fully vaccinated must undergo a COVID-19 test every week. Mandatory testing begins on September 12.

Those who test positive for the virus should isolate themselves and stay away from the workplace, Bastian said.

As of Sept. 30, the company will offer pay protection from COVID-19 only to fully vaccinated workers who experience a breakthrough infection, he said.