Delta Airlines passengers boarding from Ronald Regan National Airport to MinneapolisSaint Paul International Airport received refreshments on Friday, May 21, 2021.
Delta Air Lines CEO Ed Bastian informed employees Wednesday that there will be $200 monthly increases to their premiums for health insurance starting Nov. 1. Employees who have not been vaccinated against Covid-19 will see a steep increase in their premiums.
Other restrictions will apply to unvaccinated employees, such as indoor masking that is effective immediately and weekly Covid-19 testing starting Sept. 12, according to Atlanta-based airline.
These measures are the latest effort by a U.S. company to increase Covid vaccination rates. Delta did not issue an explicit mandate, as United Airlines earlier this month. Delta, which self-insures its employees to protect against the high costs of Covid, plans to increase premiums for non-vaccinated workers in order to offset higher insurance costs.
Bastian stated in an employee memo that the average COVID-19 hospital stay has cost Delta $55,000 per person. "This surcharge will be required to cover the financial risk that our company is taking by not vaccinating. All Delta employees who were hospitalized with COVID in recent weeks have not been fully vaccinated.
Delta is self-insured, and United Healthcare manages its health insurance plans. Delta was the one who initiated this change.
Delta stated that starting September 30, "in compliance state and local laws," COVID pay protection would only be available to fully vaccinated individuals with a breakthrough infection. Without exceptions, unvaccinated workers who contract Covid will need to use their sick days.
Bastian, CEO of Delta, stated that 75% of its roughly 75,000 employees have been vaccinated. "Aggressiveness" of the delta variant means that we must get as many of our employees vaccinated as possible.
Delta required that all new employees be vaccinated against Covid earlier in the year.
The U.S. Food and Drug Administration approved the Pfizer vaccine Monday. However, a Delta Air Lines spokesperson said that the plan was in place for several weeks and that it was not coincidental.
Alaska Airlines informed employees earlier this month that it is considering making employees vaccinated against Covid. However, it will only do so once the vaccines have been approved by the FDA. Frontier Airlines stated this month that all employees must be regularly tested for Covid and vaccinated.
Delta is the largest U.S. airline with the smallest number of unionized employees. It said that it had informed the Air Line Pilots Association about the changes.
Airlines were among the worst-hit by the pandemic. According to American Airlines, Spirit, Southwest and American Airlines, the rise of delta Covid is already causing a decline in bookings.
Correction: This article has been updated following a correction by Delta Air Lines regarding the average medical cost of an employee admitted to Covid. It's $50,000 per person.
