The cost of health care is going up. This year, workers could see a 7% increase in premiums. We found a local business that is finding ways to offset the rise in healthcare.
Alex Stephen Iacobacci loves styling hair—and loves the city he grew up in.
“Something always kept me in Boston,” said Alex Stephen Iacobacci, the owner of Avanti Salon on Newbury Street. “It’s a great city.”
He started out at Avanti Salon on Newbury Street as an assistant and worked his way up to manager--and now owner for over 20 years.
“I never liked responsibility,” said Iacobacci. “But the opportunity arose and I just wanted I said let me grow up and take a chance and own a business.”
It’s one of the longest standing businesses on Newbury Street. The secret to success? Keeping his employees happy. One of the ways he does that is by paying half of their health care—which is over $900 a month per employee.
“What we try to do is when you buy retail here, that pays for half of their health insurance,” said Iacobacci. “So the more retail we sell, the more of the premium we could pay for them. So that’s how we offset it.”
In 2025, the average annual premium for single employer-sponsored coverage in Massachusetts was $9,325, according to the Kaiser Family Foundation.
This year, total health benefit costs per employee are expected to rise about 6.5%—the largest increase since 2010. Rising medical service costs, increased prices for prescription drugs and inflation are all factors that drive up coverage. The only way to bring it down is if the employer covers some of the cost.
“So crucial because of course everything’s going up,” said Henry Stonie, a stylist at Avanti.
The health insurance and benefits are one of the reasons why Henry Stonie came to Avanti.
“You never know what’s going to happen,” said Stonie. “And so between health insurance and disability, it’s so important to have these days.”
Because Stonie feels cared for—he cares more about the work he does on daily basis.
“We have to be happy in order to translate that into doing wonderful things for the client,” said Stonie.
That ‘what goes around comes around mentality’ is also true for Iacobacci. He has employees that have worked for him for over 20 years—all because he gives back.
“For me to know that they feel valued is very important for me,” said Iacobacci. “Because I would hope that they stay longer and not just for a year or two and want to go on their own or want to leave.”
Studies have shown companies with strong benefit packages see 25 to 50% lower turnover rates compared to those with minimal benefits. Health insurance alone is cited as one of the top three reasons employees stay at their job
This is a developing story. Check back for updates as more information becomes available.
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