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September 10, 2008

Insurance head mulls $80M assessment

Maine's superintendent of insurance has two weeks to make a final decision on how much health insurance companies and self-insured businesses will pay to fund Dirigo Health, the state's subsidized health insurance program.

Superintendent Mila Kofman yesterday held a hearing where she heard arguments for and against an assessment to private insurers of $80 million to help fund Dirigo Health, according to VillageSoup. The assessment is known as the savings offset payment and is calculated based on what Dirigo is estimated to have saved the state's health care system. In July, the Dirigo Health Agency said Dirigo Health saved nearly $150 million. However, under law the most private insurers can be charged is 4% of paid claims or around $80 million, according to the State House News Service.

Opponents of the assessment want Kofman to reduce the payment to around $33 million, which is what Dirigo Health collected from private insurers last year.

 

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