AUGUSTA -- The head of a coalition that hoped to keep beverage taxes in place to support Dirigo Health wants to talk to the business community to discuss the future of the program.

Voters on Tuesday resoundingly rejected a law passed by the Legislature in April that put taxes on beer, wine, soda and other drinks to help fund Dirigo. A people's veto to repeal the taxes passed 64 percent to 36 percent.

Maine Medical Association Executive Vice President Gordon Smith, who led a group called Health Coverage for Maine, said he's hoping to go back to lawmakers next year with a renewed effort to fund Dirigo, a program created five years ago to provide health insurance to small businesses and individuals.

Just what the renewed effort will be may depend on the outcome of his discussions with business owners. He said they've approached him on a number of occasions.

"We want to follow up on those and see, between the newly elected legislators and working with the governor, what might be done in these difficult, difficult times," he said.

The Maine State Chamber of Commerce played a key role in the repeal effort. Chamber President Dana Connors served as treasurer of Fed Up With Taxes, a coalition effort largely funded by beverage companies. And Kristine Ossenfort, senior governmental-affairs specialist for the chamber, made several public appearances to speak out against the taxes.

The chamber also recently filed suit in Kennebec County Superior Court to challenge the current funding mechanism for Dirigo.

The suit seeks to have the method used to calculate the savings-offset payment declared unconstitutional.

Three other groups have filed lawsuits against Dirigo as well.

These types of court challenges are why Dirigo supporters want to change the funding source for the program. The state has spent more than $1 million defending Dirigo funding in court.

The program currently covers more than 11,000 people through DirigoChoice health insurance and another 5,600 who are Medicaid-eligible. There are about 1,500 people on a waiting list.

Ossenfort said she's ready to talk about a sustainable way to fund the program.

"Certainly we'd be willing to meet with anyone who wants to meet with us," she said. "No matter what funding source is going to be used, you're going to have a limited pool of money."

Ultimately, the chamber feels Dirigo should be put into the General Fund, where it would have to compete with all other state programs for money. But with a shortfall of at least $500 million in the next two-year budget, legislators and the governor are looking to cut funding, not to add more to the budget.

"It think it's realistic, but it is going to require prioritization," she said.

The law rejected by voters also capped fees on paid claims and would have lowered health insurance for 40,000 people with certain types of Dirigo policies.

Gov. John Baldacci and House Majority Leader Hannah Pingree, D-North Haven, said they will look to Washington for additional support for Dirigo.

When the program first started, the state applied for federal money, but that request was rejected, Baldacci said.

"Dirigo could never do it by itself," he said. "It needs help from the federal government to do it."

Pingree said the future of Dirigo will be discussed along with the state's budget situation.

"I think we'll have a very serious conversation about whether Dirigo is structured in the right way to cover people, along with what can the state afford," she said. "I have a hard time making a prediction of how it will all come out."

Smith said he would also like to consult a blue-ribbon commission report that suggested alternatives for funding Dirigo. Among the recommendations were putting the program in the General Fund, raising the cigarette tax and instituting the beverage taxes that were rejected by voters.

"I do believe there's a group of legislators elected that aren't going to be anxious for people to lose coverage," he said. "It's bad enough to have a waiting list and have enrollment capped."

Susan Cover -- 620-7015

scover@centralmaine.com