AUGUSTA (AP) – Maine’s state-sponsored Dirigo Health program has found a new partner to provide coverage for thousands of its subscribers after Jan. 1, the Baldacci administration said Thursday.

The announcement came a day after Dirigo Health and Anthem Blue Cross and Blue Shield announced that they could not agree on terms to extend Anthem’s contract to administer the health program beyond this year.

The Governor’s Office of Health Policy and Finance said the Dirigo Health Agency intends to form a new partnership starting on Jan. 1 with Harvard Pilgrim Health Care, a nonprofit health plan.

The administration said negotiations are under way to finalize contract agreements and secure needed approvals through the Bureau of Insurance. An agreement would continue coverage without interruption for the 15,000 subscribers covered by DirigoChoice, officials said.

“This new partnership is not only a better financial arrangement for Dirigo, it also helps bring competition back to the health insurance market in Maine,” state Health Policy Director Trish Riley said.

Riley said Harvard Pilgrim is nationally recognized for its health plan, “and their expanded presence in Maine will make that award-winning service available to an even greater number of Mainers.”

Harvard Pilgrim Health Care President Charles Baker said the nonprofit is “looking forward to this partnership with the Dirigo Health Agency and to the opportunity for continued growth in the Maine market.”

Karynlee Harrington, executive director of the Dirigo Health Agency, said Dirigo created a link on its Web site to update its members on the transition.

“Our focus is on our members and a seamless transition,” Harrington said.

A legislative leader welcomed the announcement, saying it was “a good day for progress in expanding access to affordable health care in Maine.”

House Majority Leader Hannah Pingree also said that because Harvard Pilgrim is a nonprofit, costs to the state will be reduced. That will work toward Dirigo’s goal of expanding access to quality health care at an affordable cost, said Pingree, D-North Haven.