Ask the Experts

Employers must consider rules under the Affordable Care Act ("ACA"), Health Insurance Portability and Accountability Act ("HIPAA"), the Americans with Disabilities Act ("ADA"), state laws, and more. With the introduction of the federal vaccine mandate for larger employers, the testing alternatives would be unavoidable. [...]for those employers who become subject to the federal vaccination mandate, wellness program incentives or surcharges could be in jeopardy. Given the high cost of coverage under U.S.-based group health plans (e.g., approximately $1,800 per month based on one well-regarded employer survey), employers should be able to achieve the desired goal within the 30 percent threshold. If the employer applies a $200 monthly surcharge to employees who do not provide proof of vaccination, the self-only cost of coverage now becomes $300 per month, and it is no longer affordable under the federal poverty line safe harbor (though it could be affordable under one of the other safe harbors).