Hospitals concerned over MaineCare debt

Hospital representatives are concerned that current state budget talks are not taking into account the $125 million the state owes hospitals through June in Medicaid reimbursements. Gov. Paul LePage’s proposal to overhaul MaineCare, the state’s version of Medicaid, could also mean less reimbursement money for hospitals in the future.

Jeff Austin, a lobbyist for the Maine Hospital Association, expressed concerns to lawmakers over the debt that has accumulated since 2009, according to the Bangor Daily News. LePage’s spokeswoman, Adrienne Bennett, says the debt is a serious concern for the governor, but that historically payments owed to hospitals are not included in the Department of Health and Human Services budget. Last year, LePage’s supplemental budget included nearly $70 million to repay hospitals, which along with federal payments brought hospitals $250 million. The debt, however, has continued to grow to a total of $400 million from both the state and the federal government.

LePage’s MaineCare proposal sets aside $25 million lawmakers could use to pay some of the debt. His proposal would cut hospital reimbursement rates, limit funding for rural hospitals and reduce payments for some services in order to save $11 million, changes hospital administrators say would cost their organizations tens of millions, according to the paper.