124th MAINE LEGISLATURE
		LD 1264		LR 1932(03)
	An Act To Stabilize Funding and Enable DirigoChoice To Reach More Uninsured
	Fiscal Note for Bill as Amended by Committee Amendment "   "
	Committee: Insurance and Financial Services
	Fiscal Note Required: Yes
Fiscal Note
			2009-10	2010-11	Projections 2011-12	Projections 2012-13
Net Cost (Savings)
	General Fund		$0	$8,370,833	$19,295,833	$29,820,833
Appropriations/Allocations
	General Fund		$0	$8,370,833	$19,295,833	$29,820,833
	Dirigo Health Fund		$0	($8,370,833)	($19,295,833)	($29,820,833)
Revenue
	Dirigo Health Fund		$2,033,333	($8,370,833)	($19,295,833)	($29,820,833)
Fiscal Detail and Notes
	Provides an appropriation of $8,370,833 in 2010-11 to the Dirigo Health Agency to offset the difference between budgeted Dirigo Savings Offset Payment (SOP) revenue and estimated access payment revenue.  The replacement of the current Dirigo SOP with a 2.14% access payment on claims paid  by health insurance carriers, 3rd party administrators and employee benefit excess insurance carriers beginning September 1, 2009, deceasing by 25% each year thereafter, is projected to result in a net increase of Dirigo Health Fund revenue of $2,033,333 in 2009-10 but decrease net revenue thereafter. This decrease will be made up by General Fund appropriations to the Dirigo Health program.
	This estimate is based on a comparison of 2010-2011 budgeted SOP revenue calculated on an accrual basis with estimated access payments calculated on a one month accrual basis (i.e., for 2009-10, 10 months of payments are assumed to be collected).  It is assumed that other changes to the Dirigo program detailed in the bill will be implemented within existing budgeted resources.
			2009-10	2010-11	Projections 2011-12	Projections 2012-13
Dirigo Revenue Impact Summary
	Budgeted SOP Revenue		$38,600,000	$41,700,000	$42,100,000	$42,100,000
	SOP Collections Prior to Repeal		$5,550,000	$0	$0	$0
	Impact of SOP repeal		-$33,050,000	-$41,700,000	-$42,100,000	-$42,100,000
	Access Payments		$35,083,333	$33,329,167	$22,804,167	$12,279,167
	Net Change In Dirigo Revenue		$2,033,333	-$8,370,833	-$19,295,833	-$29,820,833