As part of the Maine Jobs and Recovery Plan, Maine small businesses will be eligible to participate in a health insurance premium support program starting November 1st, 2021, through at least April 30th, 2023. Here is what you need to know:
What is the plan?
Maine small businesses that are enrolled in a fully insured, community-rated small group comprehensive health plan will be eligible for credit on their monthly premium.
Who is eligible to participate in the plan?
- Businesses enrolled in a fully insured, community-rated small group comprehensive health plan with the following insurers:
Aetna, Anthem, CHO (Community Health Options), Harvard Pilgrim, and United Healthcare
- There must be fewer than 50 employees enrolled in the health plan.
- Employees hired within the plan window are also eligible to receive a credit if they are enrolled in the employer sponsored plan.
- Other types of plans such as self-insured plans, dental or vision plans are not included in the program.
How much are monthly credits for?
- The expected credit amount will be $50 per adult and $30 per child (for the health plans that include coverage for a child).
The credit structure is as follows:
Adult + Child
Two Adults + Child
Note: adult and child plans provide the same credit per plan, regardless of how many children. Children can also be considered a dependent on the plan up until the age of 26.
How is the money shared between employer and employee?
- Employers are required to pass credit amounts to employees in the same proportion as the current premium contributions made by each party.
Monthly employee premium = $500
Employer contributes $250 (50%) and Employee covers $250 (50%) of premium
Amount of the credit should be split in the same 50% proportion or $25 for the employer and $25 for the employee
- Employer may pass along an additional amount (more than 50%) to the employee if desired.
What do businesses need to do?
- Businesses do not need to sign up.
- Credits will be automatically applied to your invoice directly from the insurance company.
- Businesses will need to update deduction amounts on payroll to ensure that these credits are being applied to employees proportionally.
- Business owners must provide an informational letter that they will receive from their carrier to their employees and post information about the plan in the workplace.
- Employers should contact their insurance providers with any questions that they have.