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March 3, 2008

Maine AG sues feds over Medicaid

Maine Attorney General Steven Rowe announced Friday that the state is suing the federal government over new Medicaid rules he says violate federal law.

Rowe says the new rules substantially reduce federal funds for case management under MaineCare, the state's Medicaid program, and will cost Maine's general fund more than $16 million in fiscal years 2008 and 2009, according to a press release. Rowe also alleges the rules violate the 2005 Deficit Reduction Act, and parts of the Social Security Act. "We are confident that the federal court will find that the Secretary of Health and Human Services exceeded the authority given to him by Congress," Rowe said.

Maine joined three other states -- Oklahoma, Maryland and New Jersey -- in the suit, which names the U.S. Department of Health and Human Services and Michael Leavitt, secretary of the department, as defendants. The federal government has not yet responded to the suit, reported the Bangor Daily News.

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