Sen. Nicole Grohoski introduces bill to address the funding crisis in Maine’s long-term care system
AUGUSTA — On Monday, April 14, Sen. Nicole Grohoski, D-Ellsworth, introduced legislation to address the inadequate reimbursement for the quality of care and severe staffing shortages in Maine’s long-term care system. LD 1489, “Resolve, to Provide Stability to Long-term Care Facility Funding,” was the subject of a public hearing before the Legislature’s Health and Human Services Committee. It seeks to resolve financial instability and chronic underfunding of residential care facilities, also known as Private Non-Medical Institutions (PNMIs).
“This bill addresses a mounting crisis in our long-term care system — specifically, the financial instability and chronic underfunding of residential care facilities. The consequence is the closure of these facilities, including the imminent closure of Halldale Manor in Farmingdale,” said Sen. Grohoski. “Long-term care is not a luxury and these closures are significant. They are painful disruptions to the lives of vulnerable Mainers and their families. They put caregivers out of work. They force residents to leave a place they have come to know as home.”
Just last week, Halldale Manor in Farmingdale, a 26-bed residential care facility, announced it will close on May 5. According to the Maine Long-Term Care Ombudsman Program, Halldale Manor is the 26th residential care facility to close since 2019.
LD 1489 has two parts. First, it would direct the Department of Health and Human Services to apply a cost-of-living adjustment to PNMI-C rates as outlined in existing statute, Title 22, section 3173-J. The inflation factor would be based on the United States Bureau of Labor Statistics’ medical care services index, which includes categories like professional services, nursing home services and adult day care. The greater of this index or a department-selected standardized index would be used.
Second, it would require the Department to immediately begin a formal rate study for PNMI-Cs and implement new rates by January 1, 2026. The Department had initially tied PNMI-C rate reform to the nursing home rate reform process that began over two years ago. While that reform was implemented in January 2025, PNMI-C reform has not progressed.
In testimony supporting the bill, Lead Co-Sponsor Rep. Holly Eaton, D-Deer Isle, wrote: “Across Maine, long-term care facilities are under immense pressure. Rising costs, workforce shortages and the gap between actual expenses and reimbursement rates continue to threaten their ability to operate. LD 1489 is a proactive step toward addressing those challenges and ensuring that residents, workers and families can count on these facilities to remain open and stable.”
LD 1489 faces further action in the Committee.
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