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Marketplace: Delta Airlines’ $200 charge to unvaccinated employees puts penalty power to the test

By August 26, 2021September 16th, 2021No Comments

From Marketplace:

Delta Air Lines said the average hospital stay for an employee sick with COVID-19 costs the company $50,000. Recovering that cost is part of the reason why the company plans to start charging unvaccinated employees $200 per month if they’re on the company’s insurance.

Hitting employees in their paycheck to get them vaccinated?

Kevin Volpp with the Penn Center for Health Incentives and Behavioral Economics (CHIBE) said it might work.

“We know from a lot of work in behavioral economics that a dollar lost is probably roughly twice that of a dollar gained. So a $200 penalty will have a little bit more of an impact than a $200 reward,” he said.

The $200 charge could be popular inside the company, said UC Berkeley business professor Jennifer Chatman. According to Delta Air Lines, 75% of its employees are vaccinated.

Read the full story on Marketplace.

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