In early January, I began my new role as Senate chair of the Health and Human Services Committee. This job is full of opportunities and challenges, and I’m honored to be guiding this bipartisan committee along with co-chair Rep. Michele Meyer. The work is necessary and I do feel compelled to share an urgent Maine issue with you: MaineCare.
In the last couple of weeks, much of my attention has been focused on the Health and Human Services portion of the supplemental budget, which covers fiscal year 2025. The immediate priority in this budget is filling a $117 million gap in MaineCare. This gap is due to a combination of factors, including growing health care costs due to inflation and increased reimbursement rates to providers, growing utilization by members and a large number of MaineCare enrollees. Maine is by no means alone — many states, both red and blue, are facing Medicaid budget pressures. However, what I have been coming to understand is how deeply and broadly important MaineCare is to Mainers, medical providers and our health care workforce throughout the state.
What is MaineCare? MaineCare is Maine’s largest health insurance program, and it includes Medicaid and the Children’s Health Insurance Program. It is jointly funded by the federal and state government. In general, the federal government funds 62% of the insurance program; but, in some cases, it funds as much as 90%.
Who is covered? The federal government requires that MaineCare funds low-income families and children, people with disabilities and pregnant women. In addition, 60% of Maine voters approved Medicaid expansion in the November 2017 election, making us the first state to expand the program through a citizen-initiated referendum. This expansion, implemented in 2019, includes low-income adults and has so far increased MaineCare enrollment by almost 100,000 members, ensuring the most vulnerable among us have health care. Currently, thirty percent of Mainers, or around 400,000 people, are covered under MaineCare, including half of all Maine children.
Our medical providers depend on MaineCare. Hospitals and nursing homes together account for almost 30% of total claims-based spending, with home and community-based services (older adults, people with intellectual or developmental disabilities, mental health and substance abuse services) accounting for a total of 20%. Nursing homes in particular survive on slim profit margins, and the lack of MaineCare payments to them would be catastrophic to an already struggling industry. Hospitals rely on MaineCare payments for an important part of their public/private payer mix. In addition, if members lose their coverage then the increased cost of uncompensated care for hospital emergency rooms would grow exponentially.
Some home and community-based services serving the intellectually and developmentally disabled populations and those receiving child and adult mental health and behavioral health treatment have an outsized dependence on MaineCare and may have to close their doors if a supplemental budget bill is not passed soon as an emergency. Without the two-thirds emergency passage of this supplemental budget, it is estimated that MaineCare will run out of funds by June. A two-thirds emergency vote would mean that all providers in Maine who bill MaineCare will be able to be reimbursed as soon as the Governor signs the bill.
Finally, I can’t end this note to you without mentioning the crippling effect the possible loss of federal Medicaid dollars would have on health care services for Maine. Simply put, we would not be able to continue MaineCare without federal matching dollars. Medicaid and many other federally-funded programs that truly help Maine people and not hurt them will always get my full support. I fervently hope the Trump Administration does not pursue these cuts.
As a father of three and grandfather of 12, I am committed to doing what I can to make sure Maine families continue to have access to quality, affordable health care. MaineCare is important to keep Mainers healthy, to support our health care workforce and to keep our providers open. As your state senator chairing the Health and Human Services Committee, I will work with my colleagues on both sides of the aisle to get the two-thirds vote necessary to pass this crucial supplemental budget and its MaineCare funding. The work continues.
As always, if you have any questions about the information here or if you would like to reach out with a comment, question or concern, you can reach out to me any time by emailing me at Henry.Ingwersen@legislature.maine.gov or calling my legislative office at 207-287-1515.If you want to stay up-to-date on what we’re working on in Augusta, please sign up for my email newsletter at mainesenate.org or visit my Facebook page at facebook.com/IngwersenForMaine.
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