Proposal To Allow Maine's DirigoChoice Program To Be Self-Insured Causes Concern

Main Category: Health Insurance / Medical Insurance
Article Date: 28 Mar 2006 - 11:00 PDT

email to a friend   printer friendly   opinions  

Proponents of a proposal to change Maine's DirigoChoice program to a self-insured health insurance program "had a hard time convincing skeptics" at a legislative hearing on Tuesday that the proposal would make the program more affordable, the Portland Press Herald reports (Huang, Portland Press Herald, 3/22). Maine currently has a contract with Anthem Blue Cross and Blue Shield to provide insurance through Dirigo Health. However, Gov. John Baldacci (D) last week suggested authorizing the board of Dirigo to self-insure rather than contract with a private company to administer health coverage (Kaiser Daily Health Policy Report, 3/17). Supporters of the change say allowing DirigoChoice to self-insure would help it recoup profits that otherwise would be paid to a commercial carrier. They also say additional savings could be garnered by negotiating the best deals for insurance services from different companies instead of a single insurer. However, critics, including business lobbyists and Republican members of the state Legislature's Insurance and Financial Services Committee, which held the hearing, say that a self-insured program would not guarantee savings and would violate the promise of a public-private partnership. Some lawmakers also expressed concern that DirigoChoice enrollees could lose coverage if the program went bankrupt. State Rep. Kevin Glynn (R) said, "Who is ultimately responsible for the bill?" Steven Tringale, a health care consultant hired by Baldacci's administration, said that approving the proposal does not rule out the possibility that Maine could choose a commercial carrier when Anthem's contract expires at the end of this year. He said, "Quite frankly, if the insured option is the better option when we got the bids back ... there's no reason for us not to continue an insured relationship" (Portland Press Herald, 3/22).

"Reprinted with permission from http://www.kaisernetwork.org. You can view the entire Kaiser Daily Health Policy Report, search the archives, or sign up for email delivery at http://www.kaisernetwork.org/dailyreports/healthpolicy. The Kaiser Daily Health Policy Report is published for kaisernetwork.org, a free service of The Henry J. Kaiser Family Foundation . © 2005 Advisory Board Company and Kaiser Family Foundation. All rights reserved.

• Additional
• References
• Citations