Facing the cost of healthcare for low income workers

Beacon - Since 2001, tens of thousands of Mainers of prime working age have left the work force, and these “lost workers” are increasingly citing health concerns as their reason for not working. Too many low-income Mainers are stuck in a cycle of sickness and poverty. Living at or near poverty not only makes it more difficult to afford health care, but the mental and physical stress of living in poverty creates its own health problems. Poor and near-poor Mainers often find themselves increasingly in need of care, and increasingly unable to get it.

In 2016, 55% of Mainers had some form of employer-sponsored coverage; among the non-senior population, the share rises to 60%. Employer-sponsored insurance is a good deal for many Mainers. Employer subsidies and the ability to pool the risk of an entire company workforce often make plans more affordable. But many Mainers don’t have this option.

Increasingly, part-time and low-wage employees aren’t even eligible for plans where their employers have them—or they work for a small business that doesn’t offer a plan. In 2016, fewer than one in four (24%) of low-wage, private-sector workers in Maine was eligible for an employer-sponsored plan, down from one in three (35%) in 2001. Additionally, low-wage workers are less likely to be offered—or be able to afford—a family health plan, meaning that their spouse, children, and other dependents also lack coverage options.