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October 27, 2008

Chamber sues over Dirigo

The Maine State Chamber of Commerce on Thursday filed a lawsuit to repeal funding for the DirigoChoice health insurance program, a move critics say threatens to eliminate a program that helps small businesses.

The chamber filed a lawsuit in Kennebec County Superior Court challenging the $48.7 million savings offset payment levied on insurers and health care providers to support the state-subsidized program, according to the Associated Press. The lawsuit is similar to one that failed in May 2007. The chamber also opposes a proposed beverage tax to fund Dirigo that would eliminate the need for the savings offset payment.

The group supporting the beverage tax, Consumers for Affordable Health Care, charges that the lawsuit is "hypocritical and deceptive" because the chamber has told residents that repealing the beverage tax on the Nov. 4 ballot would not threaten Dirigo's survival because the savings offset payment would fund it, according to a press release from the group.

 

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