123rd MAINE LEGISLATURE
		LD 2247		LR 3143(02)
	An Act To Continue Maine's Leadership in Covering the Uninsured
	Fiscal Note for Bill as Amended by Committee Amendment "     "
	Committee: Insurance and Financial Services
	Fiscal Note Required: Yes
Fiscal Note
			2007-08	2008-09	Projections 2009-10	Projections 2010-11
Net Cost (Savings)
	General Fund		$0	($860,397)	($889,514)	($885,311)
Appropriations/Allocations
	General Fund		$0	$43,857	$0	$0
	Dirigo Health Fund		$0	$28,602,356	$33,154,381	$34,292,790
Revenue
	General Fund		$0	$904,254	$889,514	$885,311
	Other Special Revenue Funds		$0	$48,595	$48,792	$48,561
	Dirigo Health Fund		$0	$28,602,356	$33,154,381	$34,292,790
Fiscal Detail and Notes
	Transferring a portion of cigarette tax and other tobacco products tax revenue to the Dirigo Health Agency will increase revenue in the Dirigo Enterprise Fund by $28,502,356 in fiscal year 2008-09.  The related General Fund revenue increase in sales tax revenue is estimated to be $904,254 in fiscal year 2008-09.  Maine Revenue Services will require a one-time General Fund appropriation of $43,857 in fiscal year 2008-09 for the administrative costs associated with these tax increases.
	This bill would eliminate the Saving Offset Payment (SOP), one of the funding sources for the Dirigo Health Program, beginning with the assessment effective July 1, 2008, and replace this revenue with a health access surcharge of 1.8% on paid claims and the cigarette tax and other tobacco products tax revenue. For the purposes of this fiscal note, the baseline assumption for future year SOPs is the $32.8 million SOP assessed for the year beginning July 1, 2008.
	Any additional costs to the Bureau of Insurance in the Department of Professional and Financial Regulation can be absorbed by the bureau utilizing existing budgeted resources.  The difference between the SOP budgeted to be paid by the State Employee Health program and the health access surcharge is expected to be minor.
	The bill would create the Maine Individual Reinsurance Association established as a nonprofit legal entity that is assumed to be funded beginning in July 1, 2009 by 20% of Dirigo's share of the revenue generated by the health access surcharge and cigarette tax and other tobacco products tax revenue.
Dirigo Health Fund Summary				2008-09	Projections 2009-10	Projections 2010-11
Revenue Changes:
	Elimination of the Savings Offset Payment			($32,900,000)	($32,800,000)	($32,800,000)
	Paid Claims Surcharge			$33,000,000	$37,080,000	$38,192,400
	Tobacco Tax Increase			$28,502,356	$28,874,381	$28,900,390
	Revenue Changes			$28,602,356	$33,154,381	$34,292,790
Allocation Changes:
	Payment To Reinsurance Program			$0	$13,190,876	$13,418,558
	Other Dirigo Net Allocation Increase			$28,602,356	$19,963,505	$20,874,232
	Allocation Changes			$28,602,356	$33,154,381	$34,292,790