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Thursday, December 1, 2005
Insurers' request for stay denied
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The state's top insurance regulator on Wednesday denied a request that would have kept the state from assessing a new fee on health insurers to help fund its Dirigo Health program. The Maine Association of Health Plans filed for a stay pending an appeal of Superintendent Alessandro Iuppa's finding that Dirigo Health reform initiatives have resulted in $43.7 million in savings in the health care system. That is the amount that the state plans to charge commercial insurers and third-party administrators of self-insured employers to help fund the state-subsidized DirigoChoice insurance program and other Dirigo Health programs. In an order issued Wednesday, Iuppa stood by his decision, saying it was "reasonably supported by the evidence in the record" and that the trade group did not demonstrate the need for a stay. The trade group can next seek an injunction through Cumberland County Superior Court, where it filed its appeal. Katherine Pelletreau, executive director of the trade group, said the group has not decided yet what to do. She said there is still time before insurers are required to make their first payments in April. The trade group's request for a stay was more of a legal formality, and it had not expected Iuppa to rule in their favor, Pelletreau said. "You could call it our due diligence. We were going directly to the superintendent and asking him for a stay rather than just going to the court," Pelletreau said. Gov. John Baldacci characterized Iuppa's rejection of a stay as reaffirmation that Dirigo Health works and is succeeding in controlling health care costs. "We must not lose this opportunity to improve health care for all Maine people," Baldacci said in a statement. Also appealing Iuppa's decision was the Maine Automobile Dealers Association Insurance Trust and Maine State Chamber of Commerce.
Staff Writer Josie Huang can be contacted at 791-6364 or at:
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