Maine Gov. Baldacci signs legislation that will increase taxes to fund health program

Maine Gov. John Baldacci (D) on Wednesday signed into law a bill that increases taxes and fees on beer, wine and soda manufacturers to fund the Dirigo Health program, the Blethen Maine News Service/Portland Press Herald reports.

The law also authorizes the state to use $5 million from the state's tobacco-settlement fund and borrow $3.6 million from the state general fund for the program, and it assesses a 1.8% surcharge on health insurance claims (Cover, Blethen Maine News Service/Portland Press Herald, 4/17).

According to a legislative staff analysis, the soft drink tax will generate an estimated $9.2 million for Dirigo Health in fiscal year 2009. The increase in the beer and wine tax will generate an estimated $7.5 million for the program in FY 2009.

The new law will take effect 90 days after the state Legislature adjourns. State officials said the law will allow for limited new enrollment in the program, perhaps by late summer or early fall. Trish Riley, director of the Governor's Office of Health Policy and Finance, said program enrollment would probably remain at between 17,000 and 18,000 (Quinn, AP/Bangor Daily News, 4/17).