Maine Gov. Baldacci Suggests Dirigo Health Program Self Insure Rather Than Be Administered By Private Company

Main Category: Health Insurance / Medical Insurance
Article Date: 21 Mar 2006 - 20:00 PDT

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Maine Gov. John Baldacci (D) on Wednesday suggested authorizing the board of Dirigo Health to self-insure rather than contract with a private company to administer health coverage, the AP/Boston Globe reports. The state has a contract with Anthem Blue Cross and Blue Shield to provide insurance through Dirigo. Baldacci said such a system could help the state save money, which would go toward providing more coverage. He said, "If the Legislature enacts this proposal, we will have the necessary options available to guarantee the best product at the best price and effectively reach even more people." Anthem spokesperson Mark Ishkanian said the company is not surprised by the governor's announcement, and he questioned how much savings would result from the proposal. According to the AP/Globe, there has been a "great deal of debate" over the program's funding, which comes from a mechanism called the savings offset payment. Insurers are required to make payments based on the savings that the program provides the health system. According to the Baldacci administration, the program has saved about $44 million (Adams, AP/Boston Globe, 3/15). Last week, the Maine State Chamber of Commerce and trade groups for insurance companies and hospitals proposed a funding change for the program, saying it does not want to pay more than $2.7 million, the Portland Press Herald reports. Four consumer groups and labor unions also submitted proposals on Friday, saying that the payments have improved state residents' access to health care. In related news, state Sen. John Martin (D) has introduced a bill that would prevent insurers from passing the payment to policyholders (Huang, Portland Press Herald, 3/14).

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