Delta Air Lines drops surcharge for unvaccinated employees

By AP News

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ATLANTA (AP) — Delta Air Lines has dropped a $200 per month surcharge that it had been levying against unvaccinated employees who were on the company's health plan.

ATLANTA (AP) — Delta Air Lines has dropped a $200 per month surcharge that it had been levying against unvaccinated employees who were on the company's health plan.

“We have dropped as of this month the additional insurance surcharge given the fact that we really do believe that the pandemic has moved to a seasonal virus,” CEO Ed Bastian said on a call Wednesday with analysts and reporters. “Any employees that haven’t been vaccinated will not be paying extra insurance costs going forward.”

U.S. airlines tried different approaches to get employees vaccinated against COVID-19, including a mandate by United Airlines, which ended up dismissing about 200 employees. Delta was the only one to impose an insurance surcharge, and it credited the move with helping get more than 90% of its U.S.-based workers vaccinated.

When Delta imposed the surcharge last year , Bastian said it was necessary because the average hospital stay for an employee with COVID-19 was costing the company $50,000.

Delta is self-insured and sets premiums for its plans, which are administered by UnitedHealthcare.

Airlines tried to get employees vaccinated to help reassure travelers that they wouldn't contract the virus during a flight. In the U.S., air travel is now nearly back to 90% of pre-pandemic levels.

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Author: AP News

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.

Originally published by Associated Press Valuethemarkets.com, Digitonic Ltd (and our owners, directors, officers, managers, employees, affiliates, agents and assigns) are not responsible for the content or accuracy of this article. The information included in this article is based solely on information provided by the company or companies mentioned above.

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