To the editor:
Question 1 wording: Do you want to reject the parts of a new law that change the method of funding Maine’s Dirigo Health Program through charging health insurance companies a fixed fee on paid claims and adding taxes to malt liquor, wine and soft drinks?
A campaign on behalf of Question 1 is inviting Mainers to give themselves a very small tax break — at the expense of Maine’s efforts to reform health care. Taxes are always criticized, and some people will vote to repeal any tax — no matter what it is for. This seems to be the approach pursued by Fed Up With Taxes, an advocacy group bankrolled by Pepsi, Coca-Cola, the alcohol industry and other special interests.
Their advertisements leave out some important information. The money raised by the beverage tax will go directly to Dirigo Health, a program that has already successfully reduced health care costs and provided health coverage to uninsured Mainers. The state’s approach to health care isn’t perfect, but Dirigo’s accomplishments are real, and they offer a striking contrast to the endless bad news from the commercial health insurance market.
For instance, the state has seen its proportion of uninsured residents decline over the past five years – while other states saw their number of uninsured residents rise. During this same period, cost-cutting at Maine hospitals has saved the health care system more than $110 million. Also, Dirigo is now set up to protect everyone who buys health insurance in the open market from drastic price hikes. And to some extent the DirigoChoice plan is a competitive force in Maine’s very small health insurance market.
For 18,000 adults and children, Dirigo’s most significant accomplishment is making health insurance available to those who otherwise might not have it. Those who lack health insurance are much more vulnerable to chronic and preventable ailments, and the cost of a serious illness can very easily bankrupt a family and tear it apart. Unfortunately, enrollment in DirigoChoice is capped because it’s short of funds. This has meant that the program can reach only a limited number of people.
Speaking of pennies, the beverage tax enacted by the Legislature this spring will cost consumers little – 1 cent on a glass of wine, 3 cents on a bottle of beer, and 4 cents on a can of soda. Convenience stores, pizza parlors and distributors complain that they have been unfairly singled out, but this is a group that has no problem passing on beverage price increases. An economic study funded by Fed Up with Taxes claimed the tax would cost Mainers about $40 million a year, but opponents put the statewide cost of the beverage tax at less than $17 million.
Dirigo’s other source of funding will be from health insurers who have benefited from health care savings achieved by the program.
Overturning a law of the Legislature should not be done lightly. Dirigo funding was studied at length, and in 2007 a Blue Ribbon Commission recommended the beverage tax as one of several options. The issue was discussed further at legislative hearings and enacted this April.
Fed Up With Taxes can pretend that this is an expensive mandate passed by the Legislature in the dark of night. However, the reality is that it provides modest funding to continue Maine’s important work on health care reform. Remember: 1 cent for a glass of wine; 3 cents for a bottle of beer; 4 cents for a can of soda. More health care coverage for working Mainers.
This article was originally published by another writer in the Biddeford Journal Tribune. It is brought to you by ASAP Coalition. For more information about ASAP Coalition, call 521-2408 or visit www.asapcoalition.com