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Report: Maine could be a healthcare reform model

In 2003, Maine enacted one of the most significant health reform plans of any state. A new report examines Maine's experience and how it can inform the national debate.

"Maine has pretty much faced everything that Congress is now dealing with - affordability, cost-controls, enrollment obstacles, push back from the insurance industry, attempting a public option," said Garrett Martin, an economic policy analyst at the Maine Center for Economic Policy and co-author of the report. "This analysis of our efforts shines a light on what needs to happen if meaningful reform is going to take place in Washington."

According to Martin, the main conclusions from the report are (1) States can't go it alone; (2) A public option can work; (3) Payment reform is critical; and (4) Efforts to water down comprehensive reform must be resisted.

Maine implemented a healthcare plan, commonly referred to as Dirigo, which led to a twenty percent drop in the percentage of Mainers without insurance from 2002-2007 and $160 million in documented savings in health spending over four years.

"There are a lot of detractors and nay-sayers out there ready to minimize Maine's reform efforts," said Martin. "But without Dirigo and DirigoChoice, Maine would be in a lot worse shape today. A common sense national reform package can address the inherent deficiencies all states face when they try and go it alone."

The report also notes that the state decreased the rate of growth in health insurance premiums from 13.2 percent pre-reform to 6.4 percent post- reform.

"We need health reform now," said Nicole Witherbee, MECEP's federal budget analyst. "The status quo will result in doubling healthcare spending over the next ten years from $2.2 trillion to $4.4 trillion and increase the number of people who lack coverage and access to the care they need. Health reform is not just a health issue, it's an economic issue."

The Maine Center for Economic is an independent, nonpartisan research organization based in August, Maine.