123rd MAINE LEGISLATURE
		LD 2247		LR 3143(03)
	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	$717,701	$1,292,115	$1,424,540
Appropriations/Allocations
	Other Special Revenue Funds		$0	$0	$7,629,618	$16,022,197
	Dirigo Health Fund		$0	($1,733,333)	$160,000	($973,000)
Revenue
	General Fund		$0	($717,701)	($1,292,115)	($1,424,540)
	Other Special Revenue Funds		$0	($38,570)	$7,558,743	$15,944,058
	Dirigo Health Fund		$0	($1,733,333)	$160,000	($973,000)
Fiscal Detail and Notes
	The fiscal note assumes the corporate tax revenue loss associated with the health maintenance organization assessment will reduce General Fund revenue by $717,701 in fiscal year 2008-09, reflecting initial reductions in quarterly corporate tax payments, increasing in subsequent years.
	The fiscal note further assumes the health maintenance organization assessment will be collected by the Superintendent of Insurance beginning in fiscal year 2009-10 and will total approximately 7.6 million in fiscal year 2009-10 and $16 million in fiscal year 2010-11.  It assumes an allocation of Other Special Revenue Funds will be required for the transfer (payment) of the assessment by the Superintendent of Insurance to the Maine Individual High-risk Reinsurance Pool, a nonprofit legal entity.
	This bill would also 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 starting at 1.7% on paid claims.  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.
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			$31,166,667	$32,960,000	$31,827,000
	Revenue Changes			($1,733,333)	$160,000	($973,000)
Allocation Changes:
	Elimination of the Savings Offset Payment			($32,900,000)	($32,800,000)	($32,800,000)
	Paid Claims Surcharge			$31,166,667	$32,960,000	$31,827,000
	Allocation Changes			($1,733,333)	$160,000	($973,000)