AUGUSTA (AP) – A state senator and Republican gubernatorial hopeful Thursday advanced several ways to improve Maine’s Dirigo universal health-access program, which has been pummeled by critics as too expensive and ineffectual.

Without calling for elimination of the program, Sen. Peter Mills of Cornville said Dirigo should offer subsidies to more than just one insurance carrier in order to promote market competition.

He also advocated limiting enrollment to people who have not been insured for at least a half year.

Dirigo, which is seen as a model for other states looking at expanding health coverage to people without it, “is absolutely unsustainable” financially, said Mills. With changes further limiting its enrollment and introducing a voucher system, Dirigo can continue, Mills said.

“If this program is this important, it certainly can be funded somewhere in the (state) budget,” the senator said at a news conference.

Mills zeroed in on Dirigo as a legislative battle looms over fees, known as savings offset payments, which insurance companies must pay to help finance the program.

Dirigo has also emerged as a campaign issue as Democratic Gov. John Baldacci, who has championed Dirigo, seeks a second term.

Mills faces two other Republicans for his party’s gubernatorial nomination this June.

Dirigo, designed to provide access to health care for 130,000 uninsured and underinsured Mainers, became law in 2003, but has undergone sustained criticism by Republicans and their allies.

Baldacci spokeswoman Joy Leach said the governor remains committed to a program that he says works and has resulted in millions of dollars in demonstrated savings in the health care system. Asked if the governor is willing to discuss some of the changes Mills suggested, Leach said he is looking for ways to have the program cover more people.

The state Democratic Party said Mills has been inconsistent in his stance on Dirigo and dismissed his latest proposals as “just politics as usual.”

“Peter Mills’ plan for Dirigo is to undermine the program and remove thousands of Mainers’ health coverage,” state Democratic Chairman Pat Colwell said. “Letting Mills mess with Dirigo would be like letting the fox guard the hen house.”

Mills said he is making his recommendations in his role as senior Republican on the Insurance and Financial Services Committee.

He contends that Dirigo is supported in large part by state taxpayers who are struggling to pay for their own health insurance, and in many cases are subsidizing coverage for people who are better off than themselves.

Mills said the program should impose an “asset test” to make sure only people with limited incomes should get coverage, not allowing people to sign up after they are diagnosed with medical conditions, and subsidizing fewer copays and deductibles.

Mills opposes the use of savings offsets payments to pay for Dirigo subsidies, saying the payments in effect tax Maine’s insured population.

AP-ES-02-16-06 1458EST

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