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June 9, 2009

Dirigo in line for new funding source

By The Mainebiz News Staff

A new funding mechanism for the state's Dirigo health insurance plan won Senate approval yesterday.

A bill introduced by Sharon Treat (D-Hallowell) establishes a fixed 2.14% tax on paid claims that supporters say will bring stability to the program, according to the Kennebec Journal. The tax is paid by health insurance carriers but can be passed on to consumers through their premium payments.

It replaces a complicated funding mechanism that included a variable tax on paid claims that could go as high as 4%. The new finding mechanism is expected to generate $42 million a year for Dirigo. Last year, a people's veto defeated an attempt to tax beverages to provide a stable funding source for the program, which has been problematic since its inception in 2003.

Reader comments

From Jim (Tue 6/9/2009 12:44 PM)

So we found a new way to fund a program that was supposed to fund itself, but continually proves that it cannot.

Makes perfect sense!

From pigsfly

thanks politicians. I go to work 6 days a week to support my family. Now you think it's okay to fund Dirigo by taxing every paid claim passed on to the consumer. So you think it's fair to tax industry to pay for how many people to have health insurance. When nobody new can enroll in dirigo. Just a question: Are all the state and local govt employees enrolled in dirigo? If the answer is no to the question, next question, why not? If the answer is yes, then why can't it pay for itself with out new tax revenue?

From Erica (Tue 6/9/2009 3:08 PM)

Did the legislators ever consider that the reason voters rejected the funding tax was because the voters don't believe in Dirigo?  

From Eric (Tue 6/9/2009 11:02 PM)

The experiment failed, stick a fork in it, the fat lady has sung, for god's sake can someone in Augusta just shut this money bleeding program down?!?!?!  

From Alan Minthorn (Wed 6/10/2009 6:22 AM)

Dirigo is another fine example of gov't run healthcare - failing as it has in several other states. If you think this is bad, wait till Obama nationalizes it!  

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