Health systems in other countries and pilot projects in the United States have demonstrated that effective primary patient care that is comprehensive and accessible has the potential to improve health outcomes and lower costs. Primary care does this by ensuring that patients receive effective care measures for prevention and for management of chronic illness, by coordinating the use of testing and specialist evaluation and treatment, and by providing a comprehensive array of medical services in one clinic or office. Avoidance of duplicative care, unnecessary hospitalizations, and emergency room visits results in reduced health care costs. However, the necessary infrastructure and human resources to provide comprehensive and effective primary care are generally not adequately reimbursed to practitioners by payers. For this reason, it is difficult for primary care practices to supply services that are recognized as effective.
June 9, 2009 Reported By: Josie Huang Governor John Baldacci plans to sign a bill tomorrow that's aimed at giving the state's DirigoChoice health insurance program much-needed financial stability. To pay for Dirigo, the state charges health insurers a fee each year, which invariably leads to fights over how much the fee should be. Dirigo supporters say the bill to keep the fee fixed from year to year will avoid the expensive legal battles and bad blood. "The Number one thing that it does is it makes the funding source predictable and stable," says David Farmer, spokesman for the governor. Farmer tried to reassure the 9,000 people getting insurance through Dirigo, which is priced on ability to pay, and another 5,500 people who get Medicaid through the use of Dirigo dollars.
The Maine Senate has given final approval to a measure intended to put Maine's Dirigo Health Insurance program on a healthier financial footing. The House approved the bill Friday, and Gov. John Baldacci, the bill's sponsor, is expected to sign it.
The bill provides an alternative to the Dirigo Health Program's current funding mechanism, a so-called "savings offset" fee assessed on insurers, which is based on how much health care savings the program generates. Because the amount of savings is difficult to accurately nail down, the system has led to court battles.
Instead of relying on savings estimates, the new system will assess a fixed 2.14 percent fee on paid claims. The Maine House passed the measure Friday by a vote of 83 to 53, and the Senate followed suit today by a vote to 20 to 15.