Legislature Fails to Enact Supplemental Budget Proposal as Emergency Measure

State of Maine lawmakers have failed to pass a supplemental budget that’s needed to fill a $118 million gap in MaineCare. Without those funds, the state will start capping payments to hospitals, pharmacies and other medical providers.

Governor Janet Mills statement:

“The failure of the supplemental budget to earn two-thirds support in the Senate is a grave disappointment. Senate Republicans turned away from bipartisan agreement — unlike their House counterparts — and are causing harm to Maine health care providers and patients.

The Maine Department of Health and Human Services is now in the extraordinary position of capping payments owed to health care providers — something that should have stopped, if not for obstruction by Senate Republicans.

For weeks, I have encouraged Legislative leaders of both parties to negotiate in good faith and enact this sensible, non-controversial bill with two-thirds, so it can go into effect immediately. I have appreciated my conversations with leadership on both sides of the aisle, understood their positions, and compelled them to find common ground — which they did.

Maine health care providers and patients cannot afford further delays. This brinksmanship is senseless and counterproductive. Senate Republicans should honor the bipartisan agreement and pass this bill.”

Senate Republicans statement:

On March 11, Senate Republicans withheld support for a supplemental budget that sought to bail out MaineCare, the state’s Medicaid program. Unfortunately, the supplemental failed to address the issues that led to a $450 million shortfall in the current biennial as well as a half-billion gap in the upcoming biennium budget.

Despite claims made by legislative Democrats, Senate Republicans did not guarantee support for this budget at any step of the negotiating process. Senate Republicans have been very clear that to garner support amongst the caucus, the supplemental budget would need to include concrete initiatives to safeguard MaineCare’s long-term sustainability.
While most of the caucus backed the Senate President’s amendment because it moved the bill in the right direction, that support did not exist for the budget in its entirety due to the missing protections for MaineCare. This is standard operating procedure in the Legislature.

To ensure MaineCare’s sustainability for those who need it most, Senate Republicans introduced several amendments that would allow MaineCare to function as the safety net it is meant to be. Senate Republicans proposed putting a freeze on enrollment for able-bodied adults until enrollment fell by 10% and adding community engagement requirements for childless, able-bodied adults who receive generous MaineCare benefits.
If we do not address MaineCare spending, it will not be long before MaineCare needs another bailout. On its current trajectory, MaineCare is headed toward a total collapse that will be unaffordable in just a few short years.

“It’s unfortunate that Democrats want to continue to ignore our concerns surrounding the core policy issues that precipitated the MaineCare shortfall. I have made it very clear to my Democrat colleagues that without substantive welfare reform, there would not be enough votes from my caucus to ensure two-thirds passage of the budget in the Senate”, said Sen. Trey Stewart, R-Aroostook. “After discussing the proposal with my caucus, I told the Senate President there were only two Senate Republican votes. The Democrats have gone from negotiating in bad faith to blatantly lying about a supposed guarantee of support.”

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