FOR IMMEDIATE RELEASE
Date: March 31, 2026
New Survey Details Impact of Rising Healthcare Costs on Maine Employers and Workforce
AUGUSTA, Maine — A statewide survey released today by the Healthcare Purchaser Alliance of Maine indicates that rising healthcare costs are impacting wage growth, hiring practices, and the long-term viability of employee healthcare coverage in Maine.
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.
"This survey quantifies the challenges we hear about in our daily conversations with Maine businesses," said Trevor Putnoky, CEO of the Healthcare Purchaser Alliance. "Employers want to provide competitive benefits to attract and retain talent, but the rising cost of coverage is making it increasingly difficult to do so."
Please Contact Us with any questions regarding this release.