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December 14, 2009

Director: Dirigo Health will meet loan terms

A day after telling the Legislature's appropriations committee that the Dirigo Health Agency might not be able to meet its $25 million loan obligations, its chief executive said the agency will meet the terms of the loan.

Karynlee Harrington said Friday in an agency release that attrition in the state-supported health care program has been lower than expected, creating higher costs. She assured lawmakers that the agency is well managed and will pay back the cash advance, which was given to the agency while it transitioned to a new financing plan, by June 30. Contrary to what lawmakers said Thursday, she said the cash advance does not affect the state budget.

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