Maine Insurance

Augusta - The House of Representatives from Maine, a law to stabilize on Tuesday that public funds for the Dirigo health program, reduce insurance rates for private customers from Maine to 40 percent and more healthy for young in the healthcare market. Parliament approved the bill, sponsored by House majority Leader Hannah Pingree and develop, in collaboration with the office of the governor, by a vote of 76-68.

“This is good news for the thousands of people and businesses of Maine, Dirigo quality affordable health care, and for tens of thousands of people in the private market of Maine, their prices to bottom, “said Pingree, D - North Haven. “Maine is a national leader in the field of health initiatives for consumer protection and safeguarding the quality of coverage, maintain law and what are our citizens forward.”

Most of the time, market reforms insurance more accessible and attractive to the young and healthy people, usually with low expenditure on health. Pingree said that Maine needs to attract more young people to purchase insurance with regard to lower costs for everyone. 44% of uninsured in Maine, age 29 or younger, and the bill would adjust the public assurance of its laws to reduce prices and encourage them to buy.

The bill allows a pilot insurance program for youth, for the good habit, coverage of the age of a young cheaply, and there would have to adapt the Community Rating groups - c That is the difference that insurance companies can choose between high cost - risk and low-risk customers - at a lower cost, for most young and healthy, without increasing costs for the elderly and sick.

The bill also contains a reinsurance programme by Dirigo pay for large claims, to keep these costs are not moved, for the rest of the insurance market, without the elderly at high risk excessively expensive pools, bad reports.

These changes will be strongly influenced by the Bureau of Insurance to ensure that no negative impact population suffers, and also to ensure that the annual amount of refunds are reflected.

The final reform of individual aviation market allows companies in different market players to conclude his book by companies and the creation of a specific rate for those applying for reporting in the context of a plan for individual health, on or after 1 July 2009. Insurers should the merger with their old books of 3 years and provide protection to clients in the “old book,” said not to increase its prices, given that the market adjusts.

“These reforms will help market, lower rates of private insurance for consumers in Maine to 40 percent, including a subscription to young people who are largely uninsured,” said Pingree. “And they encourage greater competition in the health sector of the market - the results at prices even lower for all. ”

The bill should also adapt the method of financing of the Dirigo health program in its work to reduce the Out-of-control costs for health care in ensuring the transparency of spending, the creation of health care better practices and a reduction in the number which is not provided by public and private health insurance DirigoChoice product.

Dirigo, insurance of more than 28000 people were either uninsured or underinsured since its inception three years ago. The programme Maine health care system over $ 100 million at this time and until registration has been stifled because of a lack of resources, it was the fastest growing insurance products of the State. From January 2008, 703 companies participated in the program.

“We all have many positions of members of the Dirigo on how it is a huge difference in their lives,” said House Insurance and Financial Services, Committee Chairman John Brautigam, D-Falmouth, which has said that many enrollees believe that the programme of their life. “500 Mainers died during the last 6 years as a consequence of the uninsured. We must continue these efforts, for these people, and for the rest of the market.”

Brautigam, if Dirigo’s customers who otherwise have no coverage of losing the program would have a negative impact on all customers insurance because the cost of their care would be tight on the private market. “The increase in the cost of their health condition deteriorated, they are showing in emergency rooms and give you the most expensive of the nature of health care, and travel is hidden by a levy on all others on the insurance market, “he said.

Proponents say the program has helped Dirigo, as only the State of Maine in the nation to see its quota is not insured by a drop 5 the twelve-month period, until 2006.

“Maine rank among the top five in both access and quality of the nation” among all States, “said committee member assurance Jill Conover, D-Oakland. “Dirigo choice was an important element in this formula for success.”

Currently Dirigo will be encouraged through a gap payment savings controversial, which is a fee to insurance companies to offer products in Maine, based on the amount of savings that the Dirigo program has been estimated for their industry . In 2007, the anthem to $ 75 million profit insurance Maine customers. The bill would place the savings with a lag of regular payment of 1.8 per cent profit margin on claims paid. Pingree said that the increase, which is more acceptable in the insurance community, would be less than the average SOP payments, given that the programme was right and would also be a reliable supplier because it is based on receivables, and not on a number of new regular Bureau of Insurance.

The original proposal had increased the tax on cigarettes by 50 cents per pack to fund to complete the program, such as cigarettes and tobacco are responsible for hundreds of millions of cost for medical care to the State . Although most legislators agree with the notion of unsafe money to pay for products for health care, many have expressed concern that smokers are responsible and pushed the costs to other health costs for drivers.

The House proposal gestrippt cigarette tax hike, on Tuesday and replace the moderate tax increases on beer, wine and soda in vending, a change in the provision of taxes on tobacco, some who did are not taxable at the same height as cigarettes and surplus funds the Health Fund of Maine, which uses the money from the tobacco settlement to the state health care initiatives.

Rep. Herb Clark, D-Millinocket, said Dirigo an alternative criticism of the ever-growing list of individuals and companies that can not be denied insurance. A mill worker, Clark said the witness a change of retirees, reduced benefit, insurance for retired employees, most of whom are elderly. “900 employees, who are retired have lost their health insurance. On this point, all workers, retirement and insurance will not,” he said.

“I am not at home and tell people that I represent that I am to further reduce its legs, if they were already cut off years” by the paper mills, which can not afford private insurance for retired employees, “said Clark. He invited members of the house bear the accounts and said, it is often the only option for many people in rural Maine, who do not qualify for state aid, but can not afford private insurance.

Pingree’s bill will now be forwarded to the Senate, and if a face to vote in each body against Governor Baldacci for his signature.