WABI TV | Governor Proposes Big Changes To Medicaid Amidst Budget Shortfall

Source: WABI TV, Rob Poindexter, December 6th 2011

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Augusta – People enrolled in Maine’s Medicaid program could see some major changes and some may lose their health insurance all together. That’s if lawmakers accept the governor’s new budget proposal he unveiled Tuesday.

The LePage administration is trying to fill a $120-million shortfall in the budget this fiscal year. A shortfall they say was caused by structural problems within Maine’s Medicaid system, coupled with skyrocketing enrollment in Medicaid. An enrollment that grew by nearly 80% from 2000-2010 while Maine’s population grew only 7% during that same time frame. LePage said the previous administration under John Baldacci covered a lot of that cost with federal stimulus money. But LePage says that well is drying up. “Maine has developed an unhealthy dependency on federal Medicaid dollars,” DHHS Commissioner Mary Mayhew said Tuesday, “to not only sustain this growth but to cover services beyond the intent of a state medicaid program.”

To fix the problem, the governor is proposing many of the same changes shot down by the legislature earlier this year. The plan would eliminate coverage for childless adults, 19 and 20 year-olds, and parents.

Optional services like chiropractic, occupational and physical therapy, and sexually transmitted disease clinics would no longer be covered by Maine’s Medicaid program.

Prescription drugs will also be limited under LePage’s proposal. There would be a two-brand name limit on prescription medication, and products to help people quit smoking would no longer be covered. The plan would also set time limits on drugs like suboxone which helps treat opiate addicts. “We feel it’s reasonable,” LePage told reporters Tuesday. “We feel that it will, while it will cause us still to be stretching our dollar as much as we can, we will be able to run an efficient Medicaid program.”

Democrats don’t agree, calling the plan shortsighted. “The proposal puts our economy in jeopardy and undermines public health and safety,” said House Minority Leader Emily Cain. “It hurts Mainers who are already struggling with absolutely no plan to get people back to work.” Democrats are also questioning where the 120-million-dollar shortfall came from. “I think we deserve, and the people of Maine deserve, with tax payer dollars, an accountability of how we have these shortfalls,” Democratic Senator Barry Hobbins said. “Why are they so big over a short period of time? We want to know what’s behind it. The devil is in the details.”

The governor hopes his proposal can be implemented by April first but he needs lawmakers to get on board by the end of January to make that happen. “I’ve asked the leadership on both sides, please put your differences away, sit down. This is crisis time,” LePage said.

Democrats say it is possible to find some common ground by next month. But they say they’re proceeding with caution. “We are cautious in looking over this,” said Hobbins. “We want to be respectful and cooperative with the governor and his administration. We don’t want to be obstructionists.”