Second Congressional District hopeful Kevin Raye on Monday released his health care reform plan, in which he ruled out a government-run system similar to that of Canada and proposed several ways to cut costs in the U.S. system.

“As one who lives near the border with Canada, I am familiar with the negative aspects of this approach, especially the bureaucracy and inefficiency in providing crucial health care services,” Raye, of Perry, said in the plan’s preface. “In improving American health care, we must be careful not to stifle the choice, quality and innovation that have made the U.S. the world leader in health care.”

Raye, former chief of staff to U.S. Sen. Olympia Snowe, unveiled the 7-page plan before the Waldo County General Hospital Education Center in Belfast.

Health care is far and away the primary concern of Maine voters this election cycle, according to a recent poll, in which 29 percent of the responses dealt with the issue.

Both Raye and his Democratic rival, state Sen. Mike Michaud of East Millinocket, raise the issue at nearly every public appearance.

After reviewing Raye’s plan Monday, Michaud aides said it raised more questions than answers.

“It’s nice to see that he joins Mike in this,” Michaud press secretary Monica Castellanos said of Raye’s support for refundable health care tax credits for those whose income is too high to qualify for public assistance but cannot afford health insurance. “But where’s the money coming from?”

Michaud’s economic development plan, released earlier this month, calls for redirecting half of the Bush administration’s income tax cut to give a health insurance tax credit for those not covered by a government program.

Raye aides said their health care tax credits rely on projected revenue streams in Bush’s 2003 budget proposal.

Raye’s health care plan also calls for prescription drug coverage for seniors under Medicare. He said the benefit should be available to all Medicare recipients, be voluntary for those who prefer their existing coverage and provide a choice of coverage plans.

Raye also said that while the government must be careful not to impede pharmaceutical research, he would look to rein in “runaway” advertising spending.

The GOP nominee said the federal government should not interfere with enactment of the court-challenged Maine Rx law, but he urged caution in expanding it to the federal level until the state can determine its success.

Michaud aides called Raye’s stance on the Maine Rx law “Washington double talk,” noting that Michaud would support federal adoption of the Maine model, which allows the state to negotiate for lower prescription drug prices based on its Medicaid pool.

In his plan, Raye also said he would look to curtail rising health care costs by, among other things, limiting punitive damage awards in malpractice lawsuits and reducing the paperwork requirements for health care providers.

While he supported limits on malpractice awards, Raye said that under a Patients’ Bill of Rights, patients should be able to sue HMOs, but only after third-party arbitration.