AUGUSTA (AP) – A Republican lawmaker on Wednesday offered expanded options in Maine’s DirigoChoice health insurance program, which is facing GOP challenges in advance of next year’s gubernatorial election.

Rep. Kenneth Lindell presented his plan to the Legislature’s Insurance and Financial Services Committee, which is looking at a number of proposals to improve the 2-year-old program that’s designed to extend coverage to thousands of residents who are uninsured and underinsured.

“I advanced this not as a dig to the governor or to his health insurance plan, but out of a genuine concern it is not working,” Lindell said.

The committee plans to resume deliberations on a Dirigo overhaul program on Dec. 7, the panel’s co-chairwoman, Rep. Anne Perry, D-Calais, said after Wednesday’s session. The Baldacci administration will work closely with the committee, an aide to Democratic Gov. John Baldacci said.

Lindell’s proposal calls for a combination of a low-cost catastrophic insurance policy with employee-owned health savings accounts. Lindell, of Frankfort, said it would offer a consumer-driven option in addition to the two more traditional insurance plans now available.

The future of Maine’s Dirigo program is shaping up as a central issue in next year’s gubernatorial campaign. Establishing the foundation to a universal health insurance program was a top priority of Baldacci after his election in 2002. Baldacci is seeking re-election next year.

Republicans have been critical of Dirigo, saying the program is not drawing as much participation as expected. At least two GOP gubernatorial hopefuls have called for substantial changes in the program. Lindell said its premiums are too high, benefits are “too stingy” and the structure too inflexible.

But Lindell believes Dirigo serves a need. A financial planner, two of his employees are enrolled in the state-sponsored program.

Under Lindell’s plan, low-income enrollees would continue to receive subsidies, but most of the subsidies would go to consumer-owned health savings accounts. He seeks to make coverage portable, so an enrollee could carry it from job to job.

Lindell said his plan could lower premiums for low-income people, save employers money in their share of employee coverage and save on state subsidies on family plans. “I think this could actually save DirigoChoice,” he said.

An aide to Baldacci said that the governor has encouraged and supported “initiatives that continue the integrity of the DirigoChoice program and keep consumer costs down.”

“While the governor has some concerns on the merit of this proposal, he appreciates the constructive approach and is confident that we will work closely with the committee as they develop a plan that’s best for Maine people,” said Baldacci aide Lee Umphrey.