Meet Melanie Collins
Home-Based Child Care Provider
Maine State Employees Association-SEIU
"Small business owners like me are taking it on the chin with the skyrocketing cost of health insurance. Some of us face premiums that more than double in a year and we're forced to make hard choices about coverage for ourselves, our family members and our co-workers.
"Eleven years ago, I opened a child care business in my home after years of practice as a registered nurse. I provide a safe and loving setting for young children while their parents work. I know firsthand the challenges parents face as we try to make ends meet under the burden of increasing health care costs.
"I'm one of the lucky Maine small business owners who purchase health insurance for my family through the Dirigo Choice program. I'm fortunate that my one employee has coverage through her husband's employer because I simply couldn't afford to provide the health insurance coverage needed. My premiums to cover me and my two kids have more than doubled in the last year and now I'm noticing charges for tests and procedures that were once fully covered. If these increases continue, I may have to close my business and find a job that offers affordable healthcare."
How reform will help Melanie
Currently, Melanie pays $457 per month for family coverage through Maine's Dirigo Choice subsidized program for small business--well over 10 percent of her net income. Her plan includes a $1,000 deductible and a $3,200 limit on annual out-of-pocket costs. If Melanie bought a plan on the open market in Maine today, she would be unable to find a plan with that low of a deductible and similar limit on out-of-pocket expenses. Instead, she would be facing deductibles and out of pocket limits upward of $10,000 per year.
Under both the House and Senate bills, Melanie would find more affordable, dependable coverage in the health insurance exchange, and Maine would be able to end the Dirigo Choice program, saving money for the state. To cover her and her two children in the exchange, Melanie would see her premiums fall by more than half in both the House and Senate bills, where she would pay 6 percent to 7 percent of her income for premiums (approximately $216 per month). However, under the House bill, Melanie would also find a comparable plan with low deductibles and out-of-pocket limits, while under the Senate bill she would face more cost sharing. Melanie's employee would also be able to find affordable coverage in the exchange.
As a very small employer, Melanie would not be required to provide coverage in either the House or Senate bill, and would face no additional fees or taxes beyond the cost of her premium.
