Affordability Crisis

Maine is facing a healthcare affordability crisis

Affordable care is out of reach for many Mainers. After years of rising healthcare costs, Mainers can no longer afford annual price increases that consistently outstrip inflation. In 2024, total premiums for a family plan in Maine totaled over $25,000—that’s akin to buying a brand new Honda Civic for every family in the state every year.

And it’s only getting worse.

In 2026, premium increases for small businesses in Maine are expected to average 17.5 percent. That’s money that could be used to increase worker wages or hire more employees, but instead is being siphoned away to pay for health insurance that costs more and more, while often offering less generous coverage.

• Despite paying sky high premiums, Mainers face average family deductibles of over $4,800 per year, the 4th highest average deductibles in the country.

• Maine also has the eleventh highest prevalence of high-deductible health plans in the country, with 61 percent of Mainers enrolled in HDHPs.

• On average, Mainers are expected to spend $2,347 per person within a household on health-related expenditures in 2025—that’s 10 percent of average household income in our state.

It’s not surprising that Mainers can no longer afford to get the care they need, or that they end up going into debt to get necessary care. A 2026 Consumers for Affordable Health Care survey of Maine workers shows the significant impact of high healthcare costs on their households. According to those results:

• Nearly 40 percent of Mainers skipped or delayed going to the doctor when they were sick due to costs. And one in three Mainers cut pills in half, skipped doses of a mediation, or delayed or did not fill a prescription due to cost.

• Two out of three families have experienced financial impacts as a result of medical bills. More than 30 percent struggle to pay for basic necessities, like food, housing, or heat. Three in ten Mainers have used all or most of their savings, and three in ten report being contacted by a collection agency.

• 41 percent of Maine households have taken on medical debt within the past two years, with 77 percent of those households covered by insurance when they took on that debt. Hospital-owned facilities are, by far, the most common source of medical debt, with 80 percent of households with medical debt saying that a hospital-based service contributed to that debt.

A new statewide survey by the Healthcare Purchaser Alliance of Maine reveals that rising healthcare costs are creating serious challenges for Maine employers, with the vast majority believing that working Mainers struggle to afford health care. Employers broadly report that premium increases are already forcing difficult tradeoffs between healthcare benefits, wage growth, and hiring — and most are not confident those tradeoffs will get easier in the years ahead. There is strong consensus among respondents that the status quo is unsustainable, and that legislative intervention is needed to address the underlying cost drivers. If savings were realized, employers indicated they would prioritize passing those benefits along to workers through lower premiums, higher wages, and improved coverage.

• The survey, which gathered responses from 107 Maine-based employers across various sectors and regions, found that 95% of respondents believe working Mainers find it difficult to afford healthcare. Additionally, 93% of surveyed employers expressed support for state legislative action to address cost drivers.

• The data suggests that healthcare premiums are directly impacting other areas of employee compensation. According to the findings, within the last three years:

  • 29% of employers have limited wage increases to offset increased healthcare costs.

  • 22% have reduced hiring due to rising premiums.

  • 87% of employers currently offering insurance expressed concern regarding the current cost trajectory.

• Looking toward future planning, 66% of respondents said they are not confident they can maintain existing benefit levels over the next five years.  If premium increases persist at current rates, 68% of employers intend to increase employee cost-sharing for their health insurance, 57% expect to limit wage increases, and 40% anticipate further reductions in hiring.

• Regarding policy interventions, such as LD 2196, which proposes hospital growth caps:

  • 93% of respondents categorized policies that limit hospital prices as "important" or "very important."

  • In open-ended feedback, employers emphasized a need to balance price-focused policies with maintaining healthcare quality and access.

  • Some respondents also identified other factors contributing to premium growth, including the role of insurance carriers.

• "Employers are working tirelessly in-house to seek out solutions each year ," noted one Maine employer in the survey. "It’s imperative that systemic change, specifically at the level of legislation, start, as we can’t rely on the ways we have been operating to solve affordability issues."

• The survey also asked employers how they would utilize potential savings if healthcare costs were reduced.

  • 53% indicated they would lower employee premium contributions.

  • 44% would allocate savings toward increased wages or bonuses.

  • 30% would offer more comprehensive benefit packages.