BLOG Medicine

Maine's Dirigo Health Savings One-Third of Original Estimate

Maine's Acting Insurance Superintendent, Eric Cioppa, ruled last Monday (17 September) that the Dirigo Health Program saved the health care system $32.8 million in its third year of operation; roughly only one-third of the original $92.7 million savings estimate released on 8 July 2007.

Despite Karynlee Harrington, executive director of the Dirigo Health Agency, previously stating in the Portland Press Herald that the agency had refined the methodology used to determine the savings amount based on past decisions of the superintendent, it appears the agency needs a new mathmagician in accounting.

On 27 July, the Dirigo Health Board of Director had reduced the estimated $92.7 million to $78.1 million.  The September 17 ruling of $32.8 million is the lowest savings figure, to date, in the agency's short, but beleaguered history; a possible indication that the agency has lost its steam.  Last year's savings were $34.2 million and the first year savings were ruled to be $43.7 million.

Of the $32.8 million, Cioppa found that the program provided $25 million in hospital savings, $6.3 million in uninsured and under-insured initiatives, and $1.5 million in provider fee savings.  The savings form the basis of the Savings Offset Payment (SOP), the sole funding mechanism for the program.

At a Dirigo Board meeting held after Cioppa's ruling, members discussed the possibility that the decrease in funding may result in the elimination of the subsidies currently paid to a majority of DirigoChoice program participants.

The Maine Dirigo Health program was established in 2003.  Dirigo stopped accepting new enrollees July 1, 2007.■

August a Flurry of Activity

I have to apologize for the abrupt shortage of articles in August, but the month was an absolute flurry of activity, behind the scenes.

In addition to maintaining BLOG Medicine, we operate a parent company (Maynard & Company) that provides healthcare consulting and management services.  Thanks to the steady increase in clients throughout New England, the services provided through Maynard & Company have transitioned to a new entity called Origin Health Group, recently taking on clients in the additional regions of the Mid-Atlantic and Deep South.  The stretch goal for 2008 is for Origin Health Group to have a presence coast-to-coast.

Also, after 11 months of brainstorming and hard work, we've created MedBay, the on-line auction community for healthcare equipment and services.  MedBay is wrapping up testing and is targeted for general release October 1.  Given the heightened awareness about health insurance and reform, MedBay will provide the ideal community mix for patient, provider, and purchaser.  I think MedBay will offer an exciting and attractive alternative to the current more restrictive and cost-prohibitive approach to paying for healthcare.  We'll be providing more information over the next few weeks as we approach our "go-live" date.

Finally, BLOG Medicine is evolving.  Over the next few months, BLOG Medicine will integrate into a larger blog platform that will include a mix of topics written by contributors from throughout the blogosphere.  Although my dedication hasn't changed, due to the other time commitments, my BLOG Medicine entries will now be biweekly on Mondays and Thursdays.  Bloggers interested in contributing to BLOG Medicine and/or the larger platform (including suggesting a name for it) are welcome to comment/contact me here.

Exciting times, indeed.  Expect BLOG Medicine to be back on schedule (and topic) with today's submission and watch for appropriate updates regarding MedBay over the coming weeks and [Insert New Blog Platform Name Here] over the coming months.  As always, I'd like to thank the readers of BLOG Medicine and especially those who have taken the time to comment -- we're nothing without you.■