Premium Incentives for Vaccination Status


Recently released FAQs confirm the view of the Departments of Labor, Treasury, and Health and Human Services (the "Departments") that employers can provide incentives under a group health plan (either in the form of premium discounts or surcharges) to encourage employees to receive COVID-19 vaccines. Such premium discounts or surcharges are permissible if offered through a wellness program as described under the Affordable Care Act ("ACA") final wellness program regulations. The FAQs confirm that vaccination status is considered an activity-based health contingent wellness program. As such, any vaccine incentives offered under a health plan must meet the following five-factor test that applies to all health contingent wellness programs: