The Maine Department of Health and Human Services managed to avoid a projected $12.5 million shortfall for the budget year that ended June 30, Commissioner Mary Mayhew recently informed the Legislature.
In late May, DHHS officials told lawmakers the preliminary year-end analysis showed the possibility of a $12.5 million shortfall in the Medicaid program, based on claims payment projections and money owed to the department from other areas of state government. In a Friday memo to lawmakers, Mayhew said the department actually saw lower-than-expected payments, received more than $3.4 million from other state agencies and more than $3 million in drug rebates.
The department said the shortfall was "all but eliminated," but didn't say what its final year-end expenditures were.
"In the end, just one provider of nursing facility services was unable to be paid a small amount, but that provider was issued payment on the first business day of State Fiscal Year ," Mayhew said.
Overall, state revenues for the fiscal year did not reach as high a surplus as was previously expected, but a final amount won't be available until next month.