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On Wednesday, June 13, 2007, the Joint Standing Committee on Insurance and Financial Services (IFS) voted on three draft reports that would address the issues of funding for the Dirigo Health program and reform of Maine’s health insurance market. The draft proposals voted on by the committee are:
1. A funding mechanism that would contain:
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An assessment on hospitals of 1% of net patient service revenue;
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An assessment on insurers of up to 1% of premiums;
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A voluntary $25 annual assessment for all adults; and,
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Under this proposal, if the total revenue exceeded $40 million, Dirigo would be required to use the excess to provide subsidies to employers enrolled in
Dirigo.
2. An increase in the tobacco tax by 75 cents per pack and equalizing the taxes on small cigars and loose tobacco, a 1.8% surcharge on hospital services, and a $25 voluntary income tax check-off; and,
3. Continuation of the Savings Offset Payment.
Unfortunately, all of these proposals continue to fund the Dirigo Health program at the expense of employers and individuals that buy insurance today. This despite the fact that those costs continue to increase, making it more and more difficult for those employers and employees to continue to be able to afford health insurance. All of these proposals would increase the costs for those buying insurance today — therefore they do not represent any improvement over the SOP; in fact, at least one proposal might increase those costs.
The three proposals are available in draft form on the Maine Chamber’s website at
http://www.mainechamber.org/HCreform%20main.asp. The committee is expected to meet on Monday, June 18, 2007, to review final drafts of the three committee reports.
The Maine State Chamber will continue to advocate for the elimination of the SOP in favor of a funding mechanism that is more broad-based and equitable, and one that does not continue to fund Dirigo Health on the backs of employers that provide and individuals that purchase health insurance today, increasing their costs even further.
For additional information on Dirigo Health or the savings offset payment, please contact Kristine Ossenfort, senior governmental affairs specialist, by calling (207) 623-4568, ext. 21, or by emailing
kossenfort@mainechamber.org.
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