Policy Documents

Dirigo Health: Higher Costs, Reduced Benefits

Tarren Bragdon –
April 1, 2004

In this policy brief on Maine's health policy Dirigo Plan, Tarren Bragdon finds:

In just one year, the Dirigo Health Plan has become significantly more expensive for many employees with dramatically reduced benefits.

➜ Many individuals and families pay for extensive health insurance coverage they don’t need or won’t use. Note: Just 20% of insured households will consume more than $2,000 in healthcare services in a given year.

➜ There are significantly less expensive health insurance plans already available in Maine, even for those individuals and families with significant healthcare costs.

➜ Rather than give all the premium dollars to the insurance companies, consumers could purchase cheaper health insurance, put some premium savings in a Health Savings Account, fund their actual healthcare costs, and then fund some of their retirement.

➜ Or, if consumers want to save even more money, they could buy health insurance outside of Maine and save thousands of dollars a year.