Leaders in Action
Maine House Speaker Leads Way to Innovative Health Coverage
Once again Maine is leading the way to make health care more
affordable. A plan sponsored by House Speaker Mike Saxl (Flemming Fellow-1997) will
lower health insurance costs for self-employed persons and business owners who
employ 50 or fewer workers.
Maine’s small businesses, which conduct 90 percent of state commerce
and employ nearly half of the state’s workforce, have been challenged to
provide adequate health insurance while absorbing rate increases of 49 percent in just
the past two years. The legislator estimates the plan will lower the costs by one-third
or more. "Maine’s Bureau of Insurance pegs the savings between 12 to 18
percent, which is still remarkable," said Saxl. Lowered costs will aid the self-employed and allow businesses to
cover more employees and drop high-deductible policies.
The heart of this legislation is a public-private partnership based on successful premium
assistance programs in other states including Massachusetts and Rhode Island. The key elements include a publicly-appointed
administrative board that will oversee the plan, a fixed fee schedule for provider reimbursement, and limits on administrative costs
and profits. The highlight of the plan, however, is the innovative use of federal funds to cross-subsidize employer and
employee contributions, and lowering the cost of coverage across the board.
To build momentum for the plan, Saxl held town hall meetings throughout the state, gathering residents’
compelling stories about healthcare costs. SEIU,Consumers for Affordable Healthcare, and the Maine Equal Justice Project were
major partners in helping create public interest in the plan. Saxl also ended up collaborating with such unlikely partners as the
Maine Medical Association, the Maine Hospital Association, and the HMO Council of Maine. "The bill got better because of
this process," Saxl noted. The bill ended up passing the House unanimously.
"Don’t be afraid of putting forward an idea that’s up against insurmountable odds," Saxl advised others interested
in introducing similar healthcare reform. "Doing the right thing is great politics."
Currently serving his fourth term in the House, Saxl graduated from Bowdoin College and the University of Maine Law School.
