In response to ongoing issues surrounding the COVID-19 pandemic, the agencies responsible for implementing and enforcing federal health care laws – the Departments of Health and Human Services (HHS), Labor (DOL), and Treasury – have issued new guidance explaining how employers should view vaccine mandates, incentives, and penalties offered as part of corporate wellness plans.
According to the guidance, group health plans are not permitted to condition receipt of benefits upon vaccine status. However, vaccine incentives or penalties such as premium discounts or surcharges are permissible if the plan adheres to the criteria for activity-only wellness plans established in the agencies’ regulations, including ensuring that a reasonable alternative standard exists to obtain the incentive (or avoid the penalty) and that the size of the incentive (or penalty) does not exceed 30 percent of the cost of employee-only coverage under the plan.
Members of the Center for Workplace Compliance (CWC) can read more here.