Senate Leaders Disappointed by Insurance Industry Response to Dirigo’s Progress
November 3, 2005
Criticize Insurance Companies for Treating Maine Citizens Unfairly
AUGUSTA—Senate Majority Leader, Michael Brennan, D-Cumberland County, expressed his concern about the insurance industry’s response to the savings created by Dirigo Health. “It’s extremely unfair for the very profitable insurance industry to only benefit from savings created by Dirigo,” said Brennan. He added, “Consumers, especially those struggling to maintain health insurance coverage, should also benefit from those savings.” Brennan, who chaired the Joint Select Committee on Health Care Reform which unanimously passed the Dirigo Health Reform Law two years ago, was referring to the industry’s insistence on passing Dirigo’s Savings Offset Payment (SOP) on to policy holders.
“The SOP was the most heavily negotiated aspect of the Dirigo Health Reform Law. businesses, consumer, health care providers, and insurers came to the table and agreed to the SOP as an alternative to a straight tax to help Maine citizens and small business access health insurance,” Brennan said. He added, “The savings offset payment is an assessment on insurers, not policy holders. The SOP is only applied if savings are found in Maine’s health care system as a result of Dirigo. If there are no savings, there is no SOP.” Maine’s Superintendent of Insurance ruled this week that nearly $44 million in savings have been achieved as a result of Dirigo. “Clearly, those savings should be shared with consumers and used to reduce the costs of health insurance in Maine,” Brennan added.
Senator Art Mayo, D-Sagadohoc County, who is the current chair of the Health and Human Services Committee and sits on the Insurance and Financial Affairs also served on the Joint Select Committee on Health Care Reform, added his concern the savings were not being shared with Maine consumers. “I am concerned the savings are being taken by insurance companies and providers,” Senator Mayo said. “The entire premise for Dirigo was to control the cost of health care for the people of Maine. We worked hard to create a mechanism that irrefutably achieved savings in Maine’s health care system. Consumers should benefit from those savings,” Mayo added.
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