Panel votes to table Dirigo health action Bill would give agency more flexibility

AUGUSTA – With two members absent, a legislative committee voted unanimously at a Thursday work session to postpone consideration of a bill that would grant greater autonomy and flexibility to the Dirigo Health Agency. The vote to table the measure until March came after sponsors requested additional time to work with Dirigo directors to refine the language of LD 1845.

The measure, sponsored jointly by Rep. Mark Bryant, D-Windham, and his brother Sen. Bruce Bryant, D-Dixfield, proposes allowing the Dirigo agency to explore and develop alternatives for the administration of the state’s year-old subsidized health insurance product, DirigoChoice. One possibility is the creation of a new, state-sponsored nonprofit insurance company – a contentious option that under current law could be developed only under the close scrutiny of the legislative Insurance and Financial Services Committee and with the explicit approval of the Legislature.

Dirigo Health Agency board Chairman Dr. Robert McAfee said Thursday that creating a new nonprofit organization is just one of many options to be considered. Although Anthem Blue Cross and Blue Shield of Maine was the only company to bid on the state contract for the first year, he said, other companies are now interested and may offer lower bids. Rather than wait until closer to the end of Anthem’s contract on Dec. 31, 2006, McAfee said, the board and agency staff should start work soon to explore the options.

McAfee noted that though the agency is satisfied with Anthem’s performance in administering DirigoChoice during the first year, the relationship is currently strained by the company’s participation in a lawsuit protesting a key funding mechanism for the program. It’s possible, he said, that either Anthem or the state may choose not to renew the company’s contract. “If that happens,” he said, “we’ll need to be able to move quickly.”

More than 9,200 individuals are currently enrolled in DirigoChoice.

At Thursday’s work session, committee members reviewed current laws governing the operation of the Dirigo Health Agency and other information pertinent to its mission of providing affordable health coverage to Maine’s uninsured.

Committee member Rep. Kevin Glynn, R-South Portland, voiced concern over losing oversight of the Dirigo agency and any potential new nonprofit organization. But, he acknowledged, the agency “should have the flexibility and enough time to solicit more bids if Anthem’s bid [for 2007] is too high.”

After the vote to table, McAfee said he was satisfied that the insurance committee has DirigoChoice’s best interests in mind.

“I’m pleased with the thoughtfulness of the committee members on both sides of the aisle,” he said. “It’s a very complex situation with a tremendous amount of information to consider. It’s certainly not wise to make a decision instantaneously.”

Committee co-chair Sen. Nancy Sullivan, D-Biddeford, said the panel will take up the bill again during the first week of March.