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September 18, 2007

Dirigo funding request cut in half

The Dirigo Health Agency can collect $32.8 million from private insurers to fund the state-subsidized insurance program in 2008, less than half of the $78 million it hoped for, Acting Insurance Superintendent Eric Cioppa said yesterday.

Dirigo Health, which administers DirigoChoice, the state-subsidized health insurance program that insures 15,000 Mainers, had hoped to increase what it charges private insurers from $34.3 million this year to $78 million to grow the program, according to a press release. But the higher assessment was disputed by some groups, including the Maine State Chamber of Commerce and the Maine Association of Health Plans, which represents Aetna, Anthem Blue Cross and Blue Shield, Cigna HealthCare of Maine and Harvard Pilgrim Health Care.

Dirigo Health bases its fee to insurers -- known as the savings offset payment -- on the amount it estimates it saves the state's health care system.

The Dirigo Health Agency Board of Directors will review Cioppa's decision tomorrow.

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