Maine lawmakers break deadlock on budget, agree to compromise deal

Yahoo

11-03-2025

Mar. 11—AUGUSTA — Maine lawmakers reached a compromise budget deal Tuesday, setting new limits on housing assistance to win the bipartisan support needed to avoid cuts in payments to MaineCare providers through the end of June.
The deal was initially approved by the Senate in a 31-2 vote Tuesday evening, followed by a vote in the House of Representatives of 129-10.
Once enacted through a second set of votes, the compromise means the state will resume regular payments to MaineCare providers after a brief curtailment. Both the Senate and House of Representatives needed to approve the deal with a two-thirds majority for the budget adjustments to take effect immediately.
"This is a responsible supplemental budget that pays our bills for the remainder of the fiscal year and reflects a commitment to finding consensus on issues that are important to all of us," Senate President Mattie Daughtry, D-Brunswick, said while introducing the compromise proposal on the Senate floor.
The proposal limits how long some Mainers can receive housing assistance through the state's General Assistance program in an effort to win Republican support for a plan to balance the state's budget over the next three months.
It would, among other things, limit housing vouchers to 12 months within a three-year period under the state's General Assistance program, which is designed to be a last-resort safety net program but has grown in recent years to provide ongoing rental support.
Republicans have pushed for such a limit, and it could provide the support needed to pass a supplemental budget as an emergency measure and allow the state to maintain payments to medical providers serving patients through MaineCare, the state's Medicaid program.
The proposed General Assistance limits, which would not apply to emergency shelters or temporary housing, are not as strict as those originally proposed by Democratic Gov. Janet Mills and supported by House Republicans. Mills originally proposed limiting housing assistance through GA to three months within a 12-month period.
Daughtry's amendment would fund an independent audit to look for "for fraud, waste and abuse" in the MaineCare program, while also requiring the Department of Health and Human Services to seek federal approval for a 1.95% cost of living increase to direct care workers. The audit would be due on Jan. 5.
Senate Minority Leader Trey Stewart, R-Presque Isle, said Tuesday that he supports the proposal.
"I do think this amendment represents improvement in the bill," he said on the Senate floor. "To echo a lot of the remarks the senator from Brunswick mentioned about the various components, I think a lot of them are needed."
Nearly all of the $121 million supplemental budget is dedicated to closing a $118 million deficit in MaineCare costs through June, the end of the current fiscal year. Another $2 million is proposed to fight spruce budworm infestations threatening Maine forests.
Even if a deal is reached Tuesday, the delay in adopting a supplemental budget means the state will have to reduce payments to medical providers in the short term, according to state officials. Passage of a budget Tuesday would mean reimbursements would be restored going forward.
Beginning Wednesday, the state will only pay 70% of prospective interim payments to critical access hospitals, while withholding payments for all hospital claims greater than $50,000 and payments to large retail pharmacies, large durable medical equipment providers, and out-of-state providers of hospital, ambulance, pharmacy and durable medical equipment services.
Critical access hospitals are smaller, isolated, rural community hospitals designated by the federal government to receive higher reimbursement rates for Medicare and Medicaid, while prospective interim payments provide a steady source of revenue so these facilities can pay fixed expenses throughout the year.
Maine has about 17 critical access hospitals, all of which are located in rural areas, including Bridgton, Calais, Dover-Foxcroft, Greenville, Houlton, Millinocket and Rumford, according to the Maine Hospital Association.
A DHHS spokesperson said that providers will still see curtailed payments beginning Wednesday even if lawmakers pass the emergency budget, because there's a one week lag time in reimbursements. Enacting an emergency budget would avoid further curtailments, so that providers would receive their full reimbursements beginning next week.
Republicans have also insisted on adding work requirements for MaineCare before they will support the supplemental budget. But Democrats have balked at that proposal since, unlike the GA reforms, work requirements have not been subject to a public hearing.
This story will be updated.
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