The Allumbaugh Agency is collaborating with Northern Hospitality on a new strategy for health care. Employers cover 155 million people through employer-sponsored health insurance, according to the Kaiser Family Foundation.
Employers are struggling with rising health premiums for their employees. Total annual costs of health insurance averages $7,700 for single coverage and $22,200 for family coverage in 2021. Premiums have increased by 22% over the past five years and 47% of the past decade. Twenty percent of employees at small businesses are paying at least $12,000 a year for their share of family premium. Workers have an average deductible of $1,700, an upswing of 68% over the last 10 years.
In light of these facts, Northern Hospitality shared facts about their business.
"Northern Hospitality is an ownership/management company that operates commercial properties, event spaces, entertainment venues and hotels," Elissa English, chief experience officer for the Northern Hospitality Group told the Maine Business Daily. "We are located throughout mid to southern Maine. Between all locations, we have approximately 150 associates on our benefits plans and we have been in operation since the early '80s."
They say their new employee health care plan is popular with workers.
"Their favorite aspects of the new plan include the reduction in their cost of having coverage and the relationships they now have with direct primary care providers," English told the Maine Business Daily.
The company says it is saving money.
"Yes, as a company, we are saving a significant amount of money on annual health benefits," English told the Maine Business Daily.
Despite cost increases, employers continue to provide health benefits at a very high rate and employees are enrolling in the plan their companies offer, according to an Agency for Healthcare Research and Quality statistical brief. Half (51%) of small employers provide coverage, but 88% of medium-sized (50-99 employees) and almost all (99%) large employers (100+ employees) offered health benefits in 2019. Seventy-two percent of employees offered health benefits enroll, despite the increasing fees.