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December 15, 2008

Association seeks Dirigo funding change

By The Mainebiz News Staff

The Maine Medical Association is suggesting a new tax on tobacco be used to fund Dirigo Health, after voters in November overturned legislation to tax beer, wine, soda and other drinks that would have paid for the state-subsidized health insurance program.

Gordon Smith, the MMA's executive vice president, is recommending the Legislature increase the tobacco tax or consider taxing insurance premiums to fund the program, according to the Kennebec Journal. The association, which represents more than 2,000 physicians in the state, has put a poll on its website asking visitors if they would support an additional tobacco tax. But Senate President Elizabeth Mitchell said the program will likely be funded with existing money, and that the state's current budget crisis would make it difficult for lawmakers to consider changing the funding source for Dirigo. The Maine State Chamber of Commerce has opposed Smith's ideas, instead proposing that Dirigo be paid for through the state's General Fund, according to the paper.

Dirigo is currently funded by the savings-offset payment, a controversial fee charged to insurers that is based on the amount the program is estimated to have saved the state's health care system.

 

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