Governor Janet T. Mills, at Coffee by Design, this Afternoon Announcing Her Proposal.  She Emphasized These Are Federal Funds, Not State Funds Used in the Program.

State Commissioner of Health & Human Services Jeanne  Lambrew, with Governor Janet T. Mills at Coffee by Design Press Conference Today Announcing Affordable Health Insurance Proposal.  The State Legislature Has to Approve the Plan.

Governor Janet Mills highlighted her proposal through the Maine Jobs & Recovery Plan to help Maine small businesses afford the cost of health insurance for their employees.  The announcement came this afternoon at Coffee by Design, a company co-founded by Mary Allen Lindemann and Alan Spears, at 1 Diamond Street on the east end of Portland.

In her introductory remarks Mary Allen Lindemann said the company’s number two expense is health insurance.  Prior to the pandemic Coffee by Design had employed 65.  The numbers went down to 26 employees and are now back up to 35  employees.  “We need help.  Hearing the Governor’s plan on insurance is great,” she said.

As part of the Maine Jobs and Recovery Plan, Governor Mills is proposing to create the “Small Business Health Care Cost Relief Program.”  Supported by $39 million in American Rescue Plan Act Funds, the program would provide small businesses with short-term financial relief from rising health insurance premiums as they recover from the COVID-19 pandemic.

The Governor’s program would provide short-term relief to small businesses and to their employees as they recover from the pandemic by lowering the cost of monthly premiums.  Under the program, health insurers would receive financial assistance through the Maine Bureau of Insurance to reduce premiums for their small business customers by $50. per covered employee per month, beginning as soon as July 1, 2021 through December 31, 2022.  Small businesses would split these savings with their employees, based on the share of the total premium the employers and employees would otherwise pay.  Employers could also choose to pass on a higher share of those savings to their employees.  The Governor said that 50,000 Maine companies are eligible for this program.

When asked, Governor Mills said she is delighted with President Biden’s infrastructure program.  Every state needs this boost.”

Following the press conference, Alan Spear, co-founder of Coffee by Design said he is still looking for qualified employees.  “We are placing ads and don’t get any response from them,” he said.  “We can’t expand our business without more employees.”

“The COVID-19 pandemic has underscored the importance of affordable, accessible and high-quality health care,” said Health & Human Services Commissioner Jeanne Lambrew.  “While the American Rescue Plan helps large employers and individuals with health insurance costs, it has a gap; it does not help small businesses sustain health coverage.  Maine is using unallocated state funding provided through the law to direct immediate relief to small businesses, including nonprofits and those in the hard-hit service, tourism, travel and hospitality industries.”

“We consistently hear from our small businesses that healthcare for their employees is one of their largest and most unpredictable costs.  Providing businesses with short-term savings from rising health insurance premiums would be welcome relief to our small businesses who are working hard to recover from the impact of the pandemic,” said Quincy Hentzel, Chief Executive Officer for the Portland Regional Chamber of Commerce in a written statement. “On behalf of over 1,300 members, we are incredibly grateful to the governor for including this in the Maine Jobs and Recovery Plan.”