House Republican Office

FOR IMMEDIATE RELEASE

For more information: Jay Finegan May 22, 2009

Was Vote against Common Sense

AUGUSTA – House Republican leader Josh Tardy said today that Maine residents were the big losers when the Legislature killed a bill to allow the purchase of health insurance from companies operating in other New England states.

The House voted down the bill, LD 290, on May 13, although 10 Democrats joined with Republicans in voting for passage. The Senate shot down the bill 19-16 on May 20, with Sen. Bill Diamond (D-Cumberland) joining with Republicans on the losing side.

“I’m very sorry for the people of our state that we were not able to get this outstanding bill through the Legislature,” said Rep. Tardy (R-Newport). “It was not for lack of trying. We’ve been highlighting this bill for months, because we all know that Maine’s health insurance system is in crisis. The Democrats dealt a severe blow against freedom of choice, common sense and financial security for Maine families.”

The bill, sponsored by Rep. Jon McKane (R-Newcastle), would have allowed Maine residents to shop around for insurance anywhere in New England and find the best prices and plans for themselves and their families. Insurance coverage is less costly in states that have competitive markets and mainstream regulatory systems. New Hampshire, for example, has 11 companies selling individual policies. Massachusetts has 21. Maine, which had at least a dozen carriers prior to insurance reform, currently has two.

Rep. Tardy said the cost of insurance is staggering for Mainers buying individual policies. Rates as high as $15,000 or $20,000 a year for family coverage are common, he said, even with high deductibles.

“It’s no mystery why we have 140,000 state residents with no insurance,” he said. “They just can’t afford it. This bill would have saved working families thousands of dollars a year. We can buy car insurance, life insurance and property insurance from out-of-state companies, but when it comes to health insurance, the majority party digs in and says no. This bill would have provided an escape hatch out of a failed system. Instead, Maine residents are left shackled to a system they can’t afford.”

Rep. Tardy said the bill was extremely popular with the general public, topping 95 percent approval ratings in legislative surveys. “When a bill is that popular, and would save so many people significant amounts of money, you have to wonder why the Democrats would want it defeated,” he said.

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