An Act To Enable the Dirigo Health Program To Be Self-administered
Maine Legislature, Session 123, LD 0431
Committee Amendment CA_A_H285 (House)

COMMITTEE AMENDMENT ,,/1 " to H.P. 347, L.D. 431, Bill, "An Act To 
Enable the Dirigo Health Program To Be Self-administered" 
Amend the bill in section 11 in §6981 in subsection 9 in paragraph E in the last line 
(page 9, line 36 in L.D.) by striking out the following: "and" 
Amend the bill in section 11 in §698I in subsection 9 in paragraph F in the last line 
(page lO, line 2 in L.D.) by striking out the following: "741." and inserting the following: 
'741;' 
Amend the bill in section 11 in §698I in subsection 9 by inserting after paragraph F 
the following: 
'G. 
The requirements of the Insurance Information and Privacy Protection Act 
pursuant to chapter 24; and 
H. The provisions of sections 2159-B and 2159-C relating to discrimination against 
victims of domestic abuse and discrimination on the basis of genetic information or 
testing.' 
SUMMARY 
This amendment is the majority report of the committee. The amendment clarifies 
that the Dirigo Health Self-administered Plan must comply with the requirements of the 
Maine Insurance Code relating to the privacy of insurance information, unfair 
discrimination against victims of domestic abuse and unfair discrimination on the basis of 
genetic information or genetic testing in addition to the other requirements included in the 
bill. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Revised: 05114/07 frae 
LD431 
LR 356(02) 
An Act To Enable the Dirigo Health Program To Be Self-administered 
Fiscal Note for Bill as Amended by Committee Amendment" It" 
Committee: Insurance and Financial Services 
Fiscal Detail and Notes 
Fiscal Note Required: Yes 
Fiscal Note 
Potential current biennium cost increase - General Fund 
Potential current biennium revenue decrease - General Fund 
Potential current biennium savings - Dirigo Health Enterprise Fund 
Minor cost increase - Other Funds 
The bill gives authority to Dirigo Health to provide access to health benefits coverage through a self-administered plan 
after the Dirigo Health board evaluates bids for self-administered and fully insured benefits coverage. The board's 
decision to convert to a self-administered plan could result in: 
> The State bearing additional financial liability if the reserve and stop loss insurance provisions required in the bill 
prove to be inadequate; 
> The General Fund losing insurance premium tax revenue of approximately $1.8 million to $2 million per year 
annualized (based on Dirigo 2008-2009 proposed budget premium assumptions) if a conversion takes place. This loss 
in revenue may be partially offset by a minor increase (i.e., less than $50,000) in corporate income tax revenue paid by 
the 3rd-party administrator Dirigo may use to administer the plan; and 
> Based on estimates from the Dirigo Health Agency, result in net savings to the Dirigo Health program of 
approximately $3.9 million per year on an annualized basis primarily from savings in administrative costs, greater plan 
design flexibility, and not having to pay the insurance premium tax. 
The additional costs to the Dirigo Health Program from other changes made in the bill can be absorbed by the program 
utilizing existing budget resources. The additional costs to the Bureau oflnsurance in the Department of Professional and 
Financial Regulation can be absorbed by the bureau utilizing existing budget resources. 
LR0356(02) - Fiscal Note - Page 1 of 1