Proposal To Fund Maine Health Insurance Program Would Impose Fixed, Annual Surcharge On Beneficiary Claims

Main Category: Health Insurance / Medical Insurance
Article Date: 11 Apr 2008 - 8:00 PDT

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Legislation being considered by Maine lawmakers would place a 1.8% fixed annual fee on claims paid by health insurers to help fund the state's DirigoChoice health insurance program, the Portland Press Herald reports. The program is expected to run out of funding in February 2009. Officials had to cap enrollment last year because of costs. About 13,000 residents are enrolled in the program, according to bill sponsor state House Majority Leader Hannah Pingree (D).

Supporters of the legislation say it will help resolve issues related to the variable amount of the fee, which has ranged from 1.7% to 2.4%. The amount is intended to be based on how much money the program, and other initiatives that cover the uninsured, have saved the health care system over 12 months. The bill also would increase the state cigarette tax from $2 per pack to $2.50 per pack.

Opponents contend that insurers and self-insured employers should not pay a surcharge and that the fee is added to the premium of policyholders. "It's still paid by the same people who are struggling with their own health insurance costs," Kris Ossenfort, a lobbyist with the Maine State Chamber of Commerce, said.

The Press Herald reports that "both sides are racing to attract legislators to their side" as the Legislature is scheduled to adjourn on Wednesday. The plan is expected to pass in the state House where Democrats outnumber Republicans 90 to 59, but "it is not clear whether it can win the Senate, where Democrats outnumber Republicans by just one legislator," the Press Herald reports (Huang, Portland Press Herald, 4/8).

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