AUGUSTA — Senior citizens, legal noncitizens and people who are HIV positive told lawmakers Monday that budget cuts proposed by Gov. Paul LePage would hurt Maine’s most vulnerable residents.

And city officials from Portland and Bangor warned that state cuts to General Assistance would shift the financial burden to property taxpayers in those cities.

Additional Photos

People wait Monday in the Hall of Flags at the State House for a chance to address the Appropriations Committee at a budget hearing. An estimated 100 people rallied in the hall outside of the governor's office before lining up to testify. Andy Molloy/Kennebec Journal

The second week of public hearings on LePage’s $6.1 billion, two-year budget began with testimony on several changes proposed to public assistance.

An estimated 300 people rode buses to the State House to demonstrate or testify against the cuts.

“The people we are talking about, our parents, our grandparents, friends and neighbors, are living perilously close to the edge right now,” said Carol Mower of Orono. “These are the people that previous legislators from both sides of the aisle wanted to protect.”

Health and Human Services Commissioner Mary Mayhew said the governor had to make difficult choices when preparing the budget for the two years starting July 1.

Maine has lost federal stimulus money and other federal funds, so it must use more than $446 million from its general fund to support the state’s Medicaid program, she said.

The state should try to align with federal policy when it comes to other welfare programs, Mayhew said.

“We must move some programs back to what they originally were designed to be — temporary support to help a family get back on its feet,” she said.

The day began with a rally sponsored by the Maine Can Do Better Coalition, a group that includes social service providers, labor unions and religious organizations.

Carol Kontos, president of AARP Maine, said cuts to the allocations from Maine’s tobacco lawsuit settlement money would make poorer senior citizens pay more for health care and prescription drug coverage.

The state has been subsidizing coverage for some low-income elderly people, but the LePage budget proposes a premium payment of 4 percent of a person’s income.

“Where will these seniors and people with disabilities go for their medical needs?” Kontos asked. “I think we all know the answer to this question. They will go without prescriptions. They will go without insurance.”

The proposals considered Monday included:

• Reducing the state’s share of General Assistance funding for large cities, which would have the biggest impact on Portland and Bangor.
• Giving the state 90 days, instead of 45, to determine whether someone is disabled enough to qualify for benefits. The state now starts paying for coverage if it takes longer than 45 days to determine eligibility. The 90-day standard would be consistent with federal guidelines.
• Changing the income eligibility standard for Medicaid to 133 percent of the federal poverty level — $24,645 a year for a family of three. Those who are enrolled now would not be affected as long as they remain in the program, and children would continue to be covered. The current eligibility standard is 200 percent of the federal poverty level, which is $37,060 for a family of three.
• Imposing a strict five-year limit for Temporary Assistance to Needy Families.
• Reducing the income eligibility levels for a program that helps pay for prescription drugs for senior citizens. The Department of Health and Human Services would have until November to submit legislation to implement the change.
• Requiring legal noncitizens to live in Maine for five years before they get food stamps, medical and financial assistance, and Supplemental Social Security income.

Andrew Bossie, executive director of the Maine AIDS Alliance, told lawmakers that 26 legal noncitizens in Maine who are HIV positive would lose health insurance July 1 because of the change.

“Medications and medical care can’t be started and stopped without grave consequences for the individual and the community,” he said.

Also, Bossie said, the 4 percent premium would affect an estimated 225 individuals and families in Maine who have HIV. Most would have to pay an additional $1,000 a year toward their health care, he said.

Portland City Councilor John Anton said the drop in the state’s share for General Assistance would mean that the city would have to pick up nearly $650,000 in costs.

The city could change its program to cut costs, DHHS officials said.

“I believe these proposals are not good for Maine and its most vulnerable citizens,” Anton said, “and more directly related to my role as city councilor, these changes will result in an increased tax burden for the local property taxpayer.”

The change to 133 percent of the poverty level for Medicaid health care coverage would mean a loss of federal matching funds.

While the state would save about $8 million over the two-year period, it would lose $18 million in federal funds, said Rep. Ken Fredette, R-Newport.

“Would hospitals pick up those costs?” he asked.

Some people who no longer would qualify for Medicaid may be able to get health insurance through their employers, said Barbara Van Burgel, director of integrated access and support for the DHHS.

“We’re trying to stay within the budget constraints we have, and in places we’re trying to bring the Medicaid program in Maine in line with other parts of the country,” she said.

Mayhew told lawmakers that an additional $20 million gap has opened in the current human services budget because of increased demand for Medicaid services.

She said the department is working to calculate whether that will affect the two-year budget now under consideration.

“We must adjust to the harsh realities that this economy brings with it and be prudent in our preparation for a climate that may get worse before getting better,” she said.

MaineToday Media State House Writer Susan Cover can be contacted at 620-7015 or at:
scover@mainetoday.com

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