123rd MAINE LEGISLATURE
		LD 1890		LR 2620(04)
	An Act To Make Health Care Affordable, Accessible and Effective for All
	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
Appropriations/Allocations
	Federal Expenditures Fund		$0	$2,595,710	$2,595,710	$2,595,710
	Other Special Revenue Funds		$0	$1,520,444	$1,509,702	$1,509,702
	Dirigo Health Fund		$0	$27,386,556	$6,817,298	$6,817,298
Revenue
	Dirigo Health Fund		$0	$28,907,000	$8,327,000	$8,327,000
Transfers
	Other Special Revenue Funds		$0	$1,520,444	$1,509,702	$1,509,702
	Dirigo Health Fund		$0	($1,520,444)	($1,509,702)	($1,509,702)
Fiscal Detail and Notes
	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 1% increase in the hospital assessment and a 1% health insurance carrier assessment. For the purposes of this fiscal note, the baseline assumption for future year SOPs is the $34.3 million SOP assessed for the year beginning  July 1, 2007. For the first year of the SOP elimination (fiscal year 2008-09) only 40% of the new SOP is assumed to be collected -- and therefore lost - in that year.
	The increase in the hospital assessment will result in an increase in MaineCare cost -- the tax is a reimbursable cost for some hospitals and services - that is funded by a transfer from Dirigo to the MaineCare program.
	This bill includes an Other Special Revenue Funds allocation of $16,154 in fiscal year 2008-09 for Maine Revenue Services' administrative costs associated with the Dirigo Health Enterprise Fund income tax check off.  Any additional costs to the Bureau of Insurance in the Department of Professional and Financial Regulation can be absorbed by the bureau utilizing existing budget resources.
Dirigo Health Fund Summary			2007-08	2008-09	Projections 2009-10	Projections 2010-11
Revenue Changes:
	Elimination of the Savings Offset Payment		$0	($13,720,000)	($34,300,000)	($34,300,000)
	Increased Hospital Assessment (1%)		$0	$26,906,000	$26,906,000	$26,906,000
	Health Insurance Carrier Assessment (1%)		$0	$15,721,000	$15,721,000	$15,721,000
	Subtotal Revenue Changes		$0	$28,907,000	$8,327,000	$8,327,000
Transfers:
	To MaineCare for hospital assessment costs		$0	($1,504,290)	($1,504,290)	($1,504,290)
	To Maine Revenue Services for check off		$0	($16,142)	($5,412)	($5,412)
	Net Change in Dirigo Allocation			$27,386,568	$6,817,298	$6,817,298