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April 2, 2008

Guv supports cig tax for Dirigo

Governor John Baldacci yesterday said he will support an increase in the cigarette tax to fund his Dirigo Health program, according to the Portland Press Herald.

Now that a supplemental bill was passed Monday night, Baldacci has turned his sights to Dirigo and other pressing issues like county jails and school consolidation. The 50-cent per pack tax increase, which was sponsored by Sen. Hannah Pingree (D-North Haven) and written by the Governor's Office of Health Policy and Finance, would help replace the controversial savings offset payment, which funds much of Dirigo through an assessment on health insurance companies, according to Current Publishing.

Dirigo provides health insurance to 14,000 Mainers, but last year froze new subsidized enrollment and is scheduled to run out of money by February 2009 unless other funding is found, the Current reported.

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