DirigoChoice has been an expensive and eminently unsuccessful boondoggle since it was created five years ago.

For some time, there have been those in state politics who take great delight in the notion that Maine can lead the country in attempting to find solutions to particular issues. From the time he was inaugurated as governor, John Baldacci identified his Dirigo Health program – and the DirigoChoice insurance program in particular – as a cornerstone of his administration. Unfortunately, the governor and his supporters ignored the reality that national issues – and the ever-increasing cost of health care is one such issue – demand national solutions. DirigoChoice has been an expensive and eminently unsuccessful boondoggle since it was created five years ago.

The Maine Heritage Policy Center, a conservative research and educational organization based in Portland, periodically publishes what it calls a “Dirigo Watch.” In a recent edition, the center took aim at new and increased taxes enacted by the 123rd Legislature to fund Dirigo.

The center cited 10 facts that, taken together, make a compelling case for the repeal of this costly failure:

DirigoChoice costs taxpayers $2,977 per enrollee per year just for the premium subsidy, excluding Dirigo Health Agency administrative costs.

As of April 2008, there were 12,637 individuals covered by DirigoChoice, less than 1 percent of the state’s population.

Only 31 percent of DirigoChoice enrollees – 3,917 – were previously uninsured for at least 12 months prior to enrollment. That is only 3.2 percent of the state’s uninsured population.

The marginal cost to state taxpayers is $9,603 to subsidize the coverage for one previously uninsured person through DirigoChoice.

Maine’s uninsured rate from 2003 to 2006, the latest year available, is virtually unchanged – 128,000 uninsured in 2003, 115,000 in 2004, 132,000 in 2005, 122,000 in 2006.

The Dirigo Health Agency’s administrative costs were $3.7 million in calendar year 2007.

Because of financial difficulties, DirigoChoice was closed to new enrollees on Sept. 1, 2007.

The 1.8 percent health care claims tax, which was included in the tax increase package approved by the Legislature, will cost individuals about $78 and families about $210 a year in higher health care premiums.

Without the $57 to $72 million tax increase, DirigoChoice enrollment is projected to drop by 4,000 individuals. Even with the tax increase, DirigoChoice enrollment still is projected to drop by 1,000 people.

The Dirigo Health experience has cost Maine taxpayers more than $100 million since 2005.

Dirigo Health was supposed to make health insurance more affordable and provide coverage for most of Maine’s uninsured. In fact, it has done neither. As the Heritage Policy Center observes, “By its own measures, DirigoChoice will spend tens of millions more to cover fewer and fewer uninsured.”

It is time to take this well-intentioned but costly failure off life support.