Highmark Building Trust understands the value of taking care of its employees. Years ago, the custom builder’s leadership team made it their mission to offer a more competitive and comprehensive health care package.
“We are constantly looking for new opportunities to serve our people,” says Nathan Carlson, project development for Highmark.
So, when Housing First Minnesota launched its Association Health Plan (AHP) at the end of 2019, opting to enroll in the member-exclusive health insurance was an easy choice.
AHPs are a category of insurance products that allow small businesses from within the same industry to obtain health care coverage as if they were a single large employer, explains Blue Cross and Blue Shield of Minnesota, Housing First Minnesota’s AHP insurance provider.
Under the Affordable Care Act, companies with 50 or more employees are required to offer group health insurance. Those with fewer than 50 employees can purchase optional coverage through the Small Business Health Options Program, but it’s typically pricier than large group insurance. Accessing those large company rates for Housing First Minnesota members “was really the premise of starting this plan,” says Housing First Minnesota’s chief operating officer, Janice Meyer.
Though AHPs have existed in Minnesota for decades, a new final rule for AHPs was released by the U.S. Department of Labor in 2018, expanding the circumstances under which a group of employers can join together and form an AHP, says the Minnesota Department of Commerce.
When that happened, Housing First Minnesota jumped at the opportunity to create its own AHP for members. “Prior to aligning with Housing First Minnesota on the AHP, we found that gaining new employees was more difficult because of the unaffordability of health care premiums as it relates to the employee’s compensation package,” says Carlson. “After joining Housing First Minnesota’s AHP, our premiums were cut in half.”
When the new AHP rule was initially proposed, health care research firm Avalere predicted AHP premiums would be between $1,900 to $4,100 lower than the yearly premiums in the small group market and $8,700 to $10,800 lower than the yearly premiums in the individual market.
Beyond the cost savings, the AHP is beneficial for recruitment and retention, crucial for an industry plagued by labor shortages. A recent report from the National Association of Home Builders states the construction industry currently needs about 723,000 new construction workers each year to meet demand. At least 90% of single-family builders reported a shortage of carpenters, and 80% to 85% reported a shortage of subcontractors in six other trades. Further, the number of construction workers aged 25 to 54 dropped by 6% over the past seven years.
“When we’re faced with low unemployment and a workforce shortage in the industry, health insurance benefits are even more important,” says Meyer. “It was important to us as an association to provide our members and their employees with better access to health insurance that can save them money while providing great coverage.”
To enroll in the plan, you must be a member of Housing First Minnesota and participate in the practice of building or physically putting something into a home. For example, window installers, plumbers, and landscapers qualify for the AHP, while architects, insurance agents, and engineers do not.
In partnership with Blue Cross and Blue Shield of Minnesota and insurance solutions firm North Risk Partners, Housing First Minnesota boasts eight fully insured plans for members to choose from — some with lower deductibles and copays, and others with higher deductibles and health savings accounts. Each plan includes coverage for doctor visits, preventative care, hospitalization, emergency care, and outpatient care, as well as health and wellbeing benefits.
“As homebuilders, we can sign up for a couple different plans, so if an employee doesn’t like one plan, they can look into another. You can better tailor the insurance to their circumstances,” says Dennis Galligan, who was motivated to enroll his company, In-Focus Systems, in Housing First Minnesota’s AHP for the consistency of the annual insurance costs.
The AHP has been well-received by Housing First Minnesota members, as evidenced by the growing number of participants. Today, there are 53 companies — 43% builders and 57% associates — signed up for the AHP, totaling 1,100 lives.
“It’s a credit to the leadership and the rest of the staff at Housing First Minnesota. They identified this need,” says Todd Polifka, president of Custom One Homes, past president of Housing First Minnesota, and AHP advisory board member. “It’s another value add to membership. Not only does Housing First Minnesota go out and unify the housing industry, partake in lobbying and networking, and provide education and marketing, but now there’s another level of value that you get with your membership.”
To learn more and see the full list of requirements, visit HousingFirstMN.org/AssociationHealthPlan
