Dirigo Health has been the focus of much discussion in the Sun Journal over the past six weeks. As the company that voluntarily stepped forward to offer DirigoChoice to the market, I need to correct several misstatements and factual errors.

The charge that insurance companies are keeping the savings from Dirigo is wrong. The statement that insurance companies agreed not to include the “savings offset payment” in premium rates is also wrong.

First, the savings from Dirigo are already included in the premiums. Payment rates and savings are routinely passed through to our customers as they are negotiated with health care providers. We do not keep any portion of these savings.

Second, when the Dirigo Health Act was negotiated, it was agreed that any “savings” from Dirigo and the related offset payments would be included together in premium rates. Separating the offset payment from the savings is contrary to original agreement and the actual language found in the statute.

A new bill now under consideration would prohibit the “savings offset payment” from being included in premiums. This bill drops any pretense that the savings offset payment is anything but a tax.

Anthem Blue Cross and Blue Shield firmly supports the goals of Dirigo. However, it’s clear that the financing mechanism is not working as intended and needs fundamental redesign. A new tax on insurers is not the answer.

We are committed to work with all parties to make Dirigo Health more effective.

Erin Hoeflinger, president, Anthem Blue Cross and Blue Shield, South Portland