Lawmakers reach deal on budget

Unanimous vote to restructure health care despite veto threats

AUGUSTA – Early Wednesday morning, lawmakers on the Appropriations and Financial Affairs committee reached agreement on $120 million cuts to the state budget. Lawmakers voted unanimously to preserve health care for thousands of low-income Mainers, including veterans, the mentally ill, and adults with serious medical conditions.

“We had to pass this budget to keep the lights on, make sure seniors get their medicine, and ensure nurses and health workers continue to get paid,” said Rep. Peggy Rotundo, D-Lewiston, the ranking House Democrat on the Appropriations Committee. “We had few choices to resolve the immediate budget problem.”

Lawmakers reached agreement on two of the most controversial items, the so-called non-categoricals and the eligibility threshold for parents of children on MaineCare. The Appropriations vote came the day after Governor Paul LePage threatened to veto any budget that didn’t kick low-income adults off of health care.

“We were able to stay at the negotiating table and agree to a solution that protects health care for thousands,” said Sen. Dawn Hill, D-York, the Senate Democrat on the Appropriations committee. “We rejected the worst of the governor’s callous proposals to cut programs for seniors, the disabled, and children.”

The agreement caps funding for non-categoricals at $40 million. It maintains the cap by freezing enrollment and through natural attrition of participants from the program. Sixty percent of childless adults are 35 or older; 43 percent are 45 or older; and 47 percent have serious medical conditions, such as cancer and diabetes. Recipients of the public health insurance must earn at or below 100 percent of the federal poverty level, which is $10,890 a year for one person.

The other initiative addresses the eligibility threshold for parents of children on MaineCare which is currently set at 200% of poverty level. Under the new agreement, changes to the parents of children on MaineCare will not occur until October 1, 2012 at which point the eligibility threshold is reduced to 133% of poverty level, aligning Maine with provisions of the Affordable Care Act.

The Legislature could vote on the agreement as early as next week. Lawmakers also agreed to address the remaining $80 million in proposed cuts to the DHHS budget for 2013 in a separate bill later this month.
In December, Governor Paul LePage proposed taking health care away from 65,000 people to close the projected $220 million in cuts to DHHS. The Appropriations Committee has been working for weeks to confirm the shortfall and find alternatives to fill the hole.
MaineCare is a health care program providing health insurance and prescription drug coverage for the elderly, disabled, mentally ill and the poor. Seventy percent of enrollees are either children, seniors or individuals with disabilities.