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April 2022  Volume 20, Number 4        


Health Insurance Premium Penalties

The state of Nevada became the first state to impose a surcharge on state workers who have not received the COVID-19 vaccine.

The state’s Public Employees' Benefits Program Board voted to charge unvaccinated workers up to $55 per month. Workers’ spouses, partners and dependents age18 and older will have to pay a surcharge of $175 a month. The penalty takes effect July 1, 2022, and includes a requirement that unvaccinated workers, who are enrolled in public employee health insurance plans, be routinely tested.

The surcharges will be used to help offset the costs of COVID-19 testing and is expected to save around $18 million in annual testing costs.

Employers who oversee private companies also can legally impose wellness incentive surcharges on employees who refuse to get the COVID-19 vaccine. However, experts caution that imposing a penalty has not been proven effective in influencing employee behavior because the costs are spread over the year. It also can make it difficult to reach minimum plan participation if unvaccinated employees opt out of coverage because they cannot afford the extra cost. The surcharge often hurts those who can least afford it. Plus, it can create administrative and legal headaches down the road.

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In this issue:

This Just In ... Health Insurance Premium Penalties

Compliance Issues for The Rest of 2022

Life Insurance for the Life of Your Business

Employers’ Guide to Understanding ERISA

401(k)s Do’s and Don’ts



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