Delta Air Lines (DAL.N) on Wednesday said employees will have to pay $200 more every month for their company-sponsored healthcare plan if they choose to not vaccinate against COVID-19.
The move to add a surcharge to health insurance contributions is the latest tactic by corporate America to push employees to get the shots to fight the pandemic.
A number of U.S. companies, including Delta competitor United Airlines (UAL.O), have mandated shots for their employees to protect their operations from the highly contagious Delta variant of the coronavirus, which has hit parts of the country with lower vaccination levels.
President Joe Biden has also urged private businesses to require employees to be vaccinated.
In a staff memo, Chief Executive Ed Bastian said the monthly surcharge would take effect on Nov. 1.
Bastian said the surcharge is necessary to address the financial risk the Atlanta-based airline faces from the decision to not vaccinate.
A Delta Air spokesperson said the average hospital stay for COVID-19 has cost the company $40,000 per person. The surcharge would apply to the entire workforce and a proof or documentation of vaccination will be needed to avoid it, the spokesperson said.