Kroger to Remove Some COVID-19 Benefits for Unvaccinated Employees

Kroger Co. will stop some COVID-19 benefits for unvaccinated employees starting next year, as the supermarket chain pushes more workers to get inoculated amid growing concerns over the spread of the omicron coronavirus variant.

The Cincinnati-based company will no longer provide paid COVID-19 leave for unvaccinated employees and will apply a $50 monthly health insurance surcharge to salaried non-union workers who are unvaccinated and enrolled in a company healthcare plan, a Kroger spokesperson said on Tuesday.

The company said it will continue offering $100 to employees to get vaccinated, CNBC reported.

"As we prepare to navigate the next phase of the pandemic, we are modifying policies to encourage safe behaviors including vaccination," a Kroger spokeswoman said.

Companies have tried other means to get their employees vaccinated, such as educational campaigns and incentive programs, but they did not see the desired results, Wade Symons, regulatory resources group leader at the benefits company Mercer, told Reuters.

"I think employers sort of see hitting employees in the wallet as a true motivator that ... should increase vaccination levels," he said.

Kroger, among the biggest private employers in the United States, had about 465,000 full] and part-time workers as of Jan. 31, according to a regulatory filing.

Concerns over the new omicron variant could cause a jump in crowds at stores in the coming weeks as consumers look to stock up essentials, analysts have said. Kroger is encouraging shoppers "to only buy what they need," the company said earlier this month.

The push to get more employees vaccinated comes as President Joe Biden faces setbacks in implementing his vaccine-or-test mandate for private businesses.

Employees that are unvaccinated potentially can cost the employer more in health insurance costs, Symons said.

"So if I'm an employer that is self-insured and pays the claims for my health insurance, and I have employees that are unvaccinated and have the potential, not only to get COVID-19 themselves, but also potentially to affect others ... I want to have them pay more to try to offset some of those costs."

Other companies that have instituted similar rules, including Delta Air Lines, which since November has required unvaccinated employees to pay a $200 monthly surcharge on their health insurance.

Newsmax staffer Jack Gournell contributed.

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