Supporters
of the new Dirigo taxes on soda, beer, wine and health care services
have gone on the offensive. In an attempt to frighten and manipulate
Maine voters, they have resorted to outrageous claims of dire
consequences to Dirigo and our entire health care system should the new
Dirigo taxes be repealed in November by a people’s veto.
Don’t believe them. Dirigo will continue whether these taxes are repealed or not. No one will lose health care.
As
a member of the Legislature’s Joint Committee on Insurance and
Financial Services, I have been present for every legislative hearing,
work session and discussion on Dirigo Health over the past four years.
I also receive quarterly statements about Dirigo enrollment and
finances. The facts about Dirigo tell a much different story than the
one Dirigo proponents use in favor of the new taxes on TV and radio and
in newspaper columns.
Dirigo
is fully funded through the Savings Offset Payment (SOP) and will
continue to be funded that way should the people’s veto to repeal these
taxes succeed. The SOP, through an incomprehensible and ever-changing
formula, calculates the supposed "savings to Maine’s health care
system," then taxes insurance companies that amount.
The
claims of huge savings to the health care system have never passed the
straight-face test and have been the target for ongoing lawsuits by
Maine’s insurers and other entities. After the first year of operation,
Dirigo claimed it had saved $133 million. By the time the SOP hearing
was finished, Maine’s superintendent of insurance had dropped that
amount to $43 million.
Even
that was a stretch. These "savings" included our hospitals’ voluntary
freezes and cutbacks, such as delaying capital improvements, forgoing
major purchases and freezing personnel wages. All of these expenses
will be made up eventually and could hardly be considered savings.
Still,
Dirigo claimed these were indeed savings and they got their money — at
the expense of all of us who buy health insurance in this state. The
insurance carriers simply add the cost to premiums. This is the current
funding system for Dirigo.
This
year Dirigo is claiming $149 million in savings to the system, the
highest amount ever, even though enrollment has dropped by thousands
since its high point. The final decision on how much of this money
Dirigo will receive will be made by the new superintendent of
insurance, Mila Koffman. She has testified in favor of Dirigo in the
past before our committee, so it could be a good year for Dirigo.
So
why does Dirigo need the new taxes on beer, wine, soda and health care
services? Because the SOP is a difficult, complex and contentious
process. It is much easier to simply take the money and forget about
proving anything.
Some
90,000 Maine voters signed the petition to put the people’s veto on the
ballot — a huge level of support. The pro-tax Dirigo proponents are
fighting back with a propaganda onslaught about the number of people
who could be "at risk of losing health care" if the Dirigo taxes are
repealed. We first heard 20,000 from the Dirigo tax bill’s sponsor,
House Majority Leader Hannah Pingree, even though the program’s actual
enrollment is only around 12,300. For greater shock value, they then
started to use 50,000. The most recent figure I’ve heard is 58,000.
These
latest numbers include everyone in Maine who buys health insurance in
the individual market. Supposedly we would all be "at risk" because the
Dirigo program saves the system so much money. In truth, Dirigo costs
the system money. It is a tax on health care and we are all paying for
it.
The
claims about the successes of Dirigo Health, the amount of money saved
and the number of people who benefit from Dirigo are preposterous.
These are bold falsehoods that are breathtaking in their audacity. The
bottom line is that the money necessary to run Dirigo and pay the
six-figure salaries of Dirigo bureaucrats will continue rolling into
the Dirigo offices in Augusta whether these new taxes take effect or
not.