New Yorkers who are unvaccinated could see less money in their paychecks. Here's why.

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Mercer, one of the nation’s biggest health benefits experts, reports employees are starting to add a $20 to $50 surcharge each month to unvaccinated workers.

Mercer consults thousands of businesses. Mercer’s regulatory resources group leader, Wade Symons, told Forbes at least 20 businesses are considering adding $20 to $50 surcharges to unvaccinated workers.

“Employers have tried encouraging employees to get vaccinated through offering incentives like paid time off and cash, but with the Delta variant driving up infections and hospitalizations throughout the country – at the same time that vaccination rates have stalled," Symons told Forbes.

The surcharge is meant to encourage more workers to get the vaccine and also lessen the cost a company pays on health insurance. COVID-19 can lead to long and pricey hospitalizations that cost the insurance company lots of money and could lead to health insurance increases for a company, officials say.

Companies are also looking into unvaccinated surcharges as an alternative to a vaccine mandate.

Mercer did not name any of the companies thinking of adding the unvaccinated surcharge but say it's similar to companies that charge workers who smoke $20 to $50 each month.

 

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