Dirigo is currently funded by something called SOP or “Soak Other People.” Although, state officials prefer to call it the “Savings Offset Payment.” It’s the amount of money Dirigo allegedly saves insurance companies each year by providing coverage to uninsured folks. The SOP is calculated annually by a magic formula that only Sarah Palin understands. Unfortunately, she’s not very good at explaining things.
What is known is that the SOP for next year is about $49 million. The insurance industry is required to write a check for that amount. The companies then pass the cost on to their customers.
Such as: you.
If that seems unfair, you’re right. In an effort to correct that inequitable assessment, the Legislature approved a bill in the closing hours of the last session to shift that burden. Instead of having to pay $49 million for an inefficient and ineffective program, your elected leaders decided you could pay $75 million for an inefficient and ineffective program. They created a new tax on beer, wine, soda, and insurance premiums designed to raise that amount for Dirigo.
Before the tax could take effect, people who like beer, wine, soda, and cheaper insurance premiums collected enough signatures for a People’s Veto, which placed a question on the November ballot asking whether the new levy should be repealed. If you vote yes, you’ll be deciding to tax yourself at the old rate of $49 million. If you vote no, you’ll be agreeing to pay $75 million.
In spite of your propensity for purchasing Wachovia stock and betting on University of Maine sports teams, I assume you’re not a complete idiot.
Got tips on hot stocks and hot games? E-mail me at aldiamon@herniahill.net.
