AUGUSTA – It looks like financing for Maine’s program to promote affordable health care will remain limited, perhaps just enough to keep it steady – and stuck.

The director of the Gov. John Baldacci’s Office of Health Policy and Finance, Trish Riley, said a $48.7 million finding of savings by Insurance Superintendent Mila Kofman came in 50 percent higher than last year.

Still, Riley said, the most likely result of the ruling would be that “it would keep the program pretty flat.”

Kofman’s full statement of findings of fact is expected by the end of the month.

The next step would be for the Dirigo Health board to translate the superintendent’s determination of savings into an annual assessment on health insurers known as the savings offset payment.

Baldacci issued a statement maintaining his support for a program he has championed.

“Every state in the nation is struggling to contain health care spending that is rising at a rate more than double that of inflation. Maine took a bold step five years ago to address rising costs, and we are achieving real and cumulative savings in the health care system through Dirigo.

“Meanwhile, Maine is succeeding in offering quality health coverage for more residents. While DirigoChoice is just part of the solution, it’s an important part, and it has literally saved lives.

More than 620 small businesses have DirigoChoice coverage, and Dirigo has been responsible for 29,000 Mainers having access to affordable insurance since its inception, and has increased competition in the individual market.”

In April, Maine lawmakers approved new taxes on soda, beer, wine and surcharges on paid insurance claims to replace the savings offset payment mechanism.

The replacement taxes have been challenged by a people’s veto referendum drive.

On Wednesday, Maine State Chamber of Commerce analyst Kristine Ossenfort put off detailed comment on Kofman’s decision until the findings of fact are issued.

But in a statement Ossenfort said, “The superintendent’s decision makes it clear, however, that the Dirigo Health program will continue to exist and those people who are currently covered by the program will continue to be covered, even if the people’s veto prevails.”

The financial status of Dirigo Health has grown creaky.

In an August report, the Legislature’s Office of Fiscal and Program Review said Dirigo Health Fund cash balances had become increasingly negative since November 2007, contributing to declining balances in the state’s cash pool.

In July, Dirigo Health Fund average cash balance was almost $20 million negative, the analysis by the legislative office said.


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