SUSAN M. COVER Blethen Maine News Service
Portland Press Herald (Maine)
11-24-2005
Baldacci: No higher premiums ; State House: He backs a bill that would prevent higher health insurance rates to help fund Dirigo.
Byline: SUSAN M. COVER Blethen Maine News Service
Edition: HOLIDAY
Section: Local & State
AUGUSTA --
Gov. John Baldacci said Wednesday he will support legislation to prevent insurance companies from increasing premiums to help pay for a state health insurance program. One day after the Dirigo Health board voted to require insurance companies to pay $43.7 million to support Dirigo Health, Baldacci on Wednesday said health insurers shouldn't pass that cost along to consumers.
'It does not go to the bottom line of insurance companies and shareholders,' Baldacci said. 'It goes to Maine people. It's their money.'
The amount is what the state superintendent of insurance believes insurance companies saved last year as a result of cost-saving measures in the program.
Sen. John Martin, D-Eagle Lake, is sponsoring a bill that would prevent insurers from increasing premiums to cover the cost of Dirigo.
Martin said the understanding between the state and health insurance companies all along was that Dirigo costs would not be passed along to policy holders.
'The original intent was certainly it would not be passed along,' he said. 'It was a savings.'
Baldacci said the state went through a thorough process to determine the amount of savings in the health care system that can be attributed to Dirigo. The intent, he said, was that insurance companies would use the money they had saved because of Dirigo to support the program moving forward.
'If, in fact, that's not followed, I'll support legislation that's already introduced that will make sure they cannot pass that on in terms of a premium increase to premium payers,' he said. 'If need be, it should be retroactive.'
Some insurance companies that serve Maine consumers have said they would be forced to pass along the cost to customers because Dirigo hasn't saved them nearly as much as the state estimated. Some are even considering challenging the assessment.
Anthem Blue Cross Blue Shield spokesman Mark Ishkanian said Anthem wants to pass along savings to consumers, but that inflation in health care costs means smaller increases, not reductions.
'This is the first we've heard of the governor's position,' he said. 'If it's true, this news is disconcerting to us.'
Anthem, the state's largest health insurance company, administers DirigoChoice health insurance for the state.
Katherine Pelletreau, executive director for the Maine Association of Health Plans, which represents Anthem, Aetna, Cigna and Harvard Pilgrim, said insurers strive to reduce rates, when possible, to remain competitive. 'Our issue is, look, until you see savings in the marketplace on the ground, they don't really exist,' Pelletreau said.
Rep. Kevin Glynn, R-South Portland and a member of the legislative committee that will hear Martin's bill, said the measure is unnecessary because the state Bureau of Insurance already reviews rate increases to protect consumers against price gouging or other unreasonable premium hikes.
The Legislature passed the landmark Dirigo Health legislation in June 2003, with broad, bipartisan support. The measure passed the House 105-38 and the Senate 25-8. About 7,300 people are currently enrolled in Dirigo.
But since its launch a year ago, many Republicans have been critical of the program, saying it hasn't covered as many people as expected, that coverage is too expensive, and that it hasn't reduced health care costs for all Mainers.
Supporters say the program, which is designed to offer health insurance to the estimated 130,000 Maine people who don't have it, is working. Now that $53 million in one-time startup money is nearly gone, the state is looking for a way to fund the program.
That's why insurance companies are being told to pay into the program, which is also supported by employer and employee payments, and federal Medicaid money. The additional $43.7 million is expected to help 3,000 people who are on a waiting list get coverage next year.
Copyright 2005 Blethen Maine Newspapers Inc.
Portland Press Herald (Maine)
11-24-2005
Baldacci: No higher premiums ; State House: He backs a bill that would prevent higher health insurance rates to help fund Dirigo.
Byline: SUSAN M. COVER Blethen Maine News Service
Edition: HOLIDAY
Section: Local & State
AUGUSTA --
Gov. John Baldacci said Wednesday he will support legislation to prevent insurance companies from increasing premiums to help pay for a state health insurance program. One day after the Dirigo Health board voted to require insurance companies to pay $43.7 million to support Dirigo Health, Baldacci on Wednesday said health insurers shouldn't pass that cost along to consumers.
'It does not go to the bottom line of insurance companies and shareholders,' Baldacci said. 'It goes to Maine people. It's their money.'
The amount is what the state superintendent of insurance believes insurance companies saved last year as a result of cost-saving measures in the program.
Sen. John Martin, D-Eagle Lake, is sponsoring a bill that would prevent insurers from increasing premiums to cover the cost of Dirigo.
Martin said the understanding between the state and health insurance companies all along was that Dirigo costs would not be passed along to policy holders.
'The original intent was certainly it would not be passed along,' he said. 'It was a savings.'
Baldacci said the state went through a thorough process to determine the amount of savings in the health care system that can be attributed to Dirigo. The intent, he said, was that insurance companies would use the money they had saved because of Dirigo to support the program moving forward.
'If, in fact, that's not followed, I'll support legislation that's already introduced that will make sure they cannot pass that on in terms of a premium increase to premium payers,' he said. 'If need be, it should be retroactive.'
Some insurance companies that serve Maine consumers have said they would be forced to pass along the cost to customers because Dirigo hasn't saved them nearly as much as the state estimated. Some are even considering challenging the assessment.
Anthem Blue Cross Blue Shield spokesman Mark Ishkanian said Anthem wants to pass along savings to consumers, but that inflation in health care costs means smaller increases, not reductions.
'This is the first we've heard of the governor's position,' he said. 'If it's true, this news is disconcerting to us.'
Anthem, the state's largest health insurance company, administers DirigoChoice health insurance for the state.
Katherine Pelletreau, executive director for the Maine Association of Health Plans, which represents Anthem, Aetna, Cigna and Harvard Pilgrim, said insurers strive to reduce rates, when possible, to remain competitive. 'Our issue is, look, until you see savings in the marketplace on the ground, they don't really exist,' Pelletreau said.
Rep. Kevin Glynn, R-South Portland and a member of the legislative committee that will hear Martin's bill, said the measure is unnecessary because the state Bureau of Insurance already reviews rate increases to protect consumers against price gouging or other unreasonable premium hikes.
The Legislature passed the landmark Dirigo Health legislation in June 2003, with broad, bipartisan support. The measure passed the House 105-38 and the Senate 25-8. About 7,300 people are currently enrolled in Dirigo.
But since its launch a year ago, many Republicans have been critical of the program, saying it hasn't covered as many people as expected, that coverage is too expensive, and that it hasn't reduced health care costs for all Mainers.
Supporters say the program, which is designed to offer health insurance to the estimated 130,000 Maine people who don't have it, is working. Now that $53 million in one-time startup money is nearly gone, the state is looking for a way to fund the program.
That's why insurance companies are being told to pay into the program, which is also supported by employer and employee payments, and federal Medicaid money. The additional $43.7 million is expected to help 3,000 people who are on a waiting list get coverage next year.
Copyright 2005 Blethen Maine Newspapers Inc.
