For Immediate Release:

March 25, 2011 

For More Information, Please Contact:  

Greg White, Public Relations Coordinator

207-622-7083 (o); 202-674-4491 (c)gwhite@mainecahc.org

 

 

Consumers for Affordable Health Care Testifies Against

Proposed Cuts to Dirigo Health Agency

 

(Augusta) Consumers for Affordable Health Care Policy Director Mitchell Stein on Thursday testified in opposition to the budget proposal that would reduce funding for the Dirigo Health Agency (DHA).  The State Committees on Appropriations and Financial Affairs and Insurance and Financial Services held the hearing, which specifically dealt with the proposed reductions to the access payments in Governor LePage's budget proposal.  Stein highlighted the success of the program in providing quality, affordable coverage to nearly 15,000 Mainers and over 580 Maine businesses, and DHA's success in keeping premium increases low.  Stein said, "There was no increase for individuals and only a 2% increase for businesses within each rate class.  Again, this is compared to double digit increases for other private insurance plans."

 

There has also been wide speculation that DHA is a viable entity to operate the state insurance exchange created by the Affordable Care Act, which would become operational in 2014.  For that reason, Stein said that reducing the assessment does not make sense.  "When Maine's Health Benefit Exchange is up and running, it will need to be self-supporting.  Current and future federal grants are only meant to design and build the Exchange, not run it," Stein said in his written testimony.  "The existing Assessment is an appropriate way of funding the operations of the Exchange going forward; eliminating that source of revenue now would be counterproductive." 

 

The State Legislature has been debating the proposed budget for most of the month of March.  There will likely be a vote on the budget in early April.  Stein's testimony in full can be found here.  

 

For the entire list of Maine businesses (excluding sole proprietors) enrolled in either DirigoChoice or the Part Time Worker Voucher Program, please click on the

link.

 

 

 

Consumers for Affordable Health Care is a non-profit, non-partisan organization that has been helping Maine people get quality, affordable health care for more than 20 years. If you have any public or private insurance questions please call our toll free consumer HelpLine at 1-800-965-7476.  

 

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