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June 3, 2008

Dirigo says it saved $190M

The Dirigo Health Agency announced yesterday that programs like DirigoChoice health insurance last year saved the Maine health care system $190.2 million, a figure used to calculate the savings offset payment levied against insurers to pay for Dirigo.

The fourth-year savings accounts for over 24 Dirigo Health Reform initiatives and will be reviewed by the Dirigo Health Board of Trustees on July 22 and, later, by the state superintendent of insurance to decide the final savings offset payment, according to a press release from the agency. Last year, the superintendent ruled Dirigo saved $32.8 million, or roughly half of what the Dirigo Health Agency reported.

However, the savings offset payment may be scrapped altogether this year if a new law increasing the tax on beer, wine and soda to pay for Dirigo goes into effect as planned July 18. A petition drive to overturn the tax is currently underway.

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