How Not Getting Vaccinated Can Cost You Money
The COVID-19 vaccines are strongly recommended by medical and governmental authorities. And employers are proposing new ways of encouraging employees to get vaccinated.
Clearsurance recently released a report, Unvaccinated? You May Pay More for Health Insurance, in which they share what you can expect regarding your health insurance premiums if you haven’t been vaccinated.
Key Points Regarding Health Insurance and Vaccine Status
Clearsurance shared that a September 2021 survey revealed the following:
- Nearly 20% of companies considered raising health insurance premiums for unvaccinated employees.
- Many companies are considering additional fees and surcharges for unvaccinated employees
- Unvaccinated people could pay hundreds more per month in health insurance rates.
The implications of being unvaccinated extend beyond physical health and into financial wellbeing.
It’s not just American companies considering using vaccine status as a way to set insurance rates. International health insurance companies are also weighing their options.
Employers Considering Premiums Based on Vaccine Status
Not all employers are considering classifying insured individuals by vaccine status, but 20% of them are. That means one in five employers might require higher insurance payments from unvaccinated employees.
Since American insurers haven’t done something like this in the past, you can expect the number of insurance companies interested in raising premiums to increase or decrease depending on what happens when and if the first insurance company enacts this proposal.
Hospital care for unvaccinated individuals fighting COVID-19 could easily exceed $50,000 per visit, and insurance providers may have to raise premiums overall.
Employers who wish to offer competitive benefits packages try to avoid increased health insurance costs, so they are considering rewarding the vaccinated while penalizing the unvaccinated in hopes of lowering their overall risk.
Insureds’ Costs Based on Vaccine Status
Health insurance is one of the most important and most costly types of insurance available. Some individuals spend over $1,000 monthly for coverage, and families often pay far more.
The insurance providers may increase premiums through several avenues, including the following:
- Adding fees
- Adding surcharges to group health plans
- Providing wellness programs benefiting the vaccinated
- Raising premiums
So, depending on coverage levels, current premiums, and employer benefits, unvaccinated individuals might pay $50 to $400 dollars more a month for health insurance.
Reasons Behind Higher Costs for Unvaccinated Employees
Health insurance companies argue that unvaccinated individuals have the potential to cost them far more than vaccinated policyholders. Over the past two and a half years, employers with thousands of employees have felt the cost of COVID-19 hospital care, so they’re focused on finding ways to make up for those costs and reduce their risk in the future.
Both large and small employers are considering their risks, the policies and premiums offered by insurance providers, and the well-being of their employees. Some may choose to mitigate their risk and encourage employees to be vaccinated by using financial means.
Issues to Consider
While employers can legally require higher premiums and surcharges for unvaccinated employees in most states, not everyone agrees that it’s a good idea.
Individuals make many health choices that lead to a higher risk of filing claims, but insurance companies don’t classify individuals based on those risks. As a result, many people consider it unfair for employers to pick and choose what health risks they’ll penalize and which ones they’ll ignore.
Clearsurance points out that the impact of choosing to be unvaccinated could stretch five to 10 years or more into the future. So, insurance companies must weigh their financial risk in the long term and adjust their methods as time provides better statistics on measuring costs.
Regardless of your views on how employers should handle the health risks associated with not being vaccinated against COVID-19, you should understand the potential penalties and incentives depending on your choice.
Read Clearsurance’s full report here: Unvaccinated? You May Pay More for Health Insurance