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January 31, 2008

Medicaid funding change hits Maine hard

Maine stands to lose $45 million from its general fund in fiscal years 2008 and 2009 because of new Medicaid rules, state officials said yesterday.

On Dec. 29, President George W. Bush made his third and final veto of a bill that would have enacted an 18-month moratorium on the five major funding changes. The changes will now become effective this year, with the first coming at the end of February. The changes strip federal funding for Medicaid programs like case management for children in state custody, transportation of students to and from school, and rehabilitation services for the disabled, according to a press release. The total fiscal impact of the changes to Maine communities is estimated at $141 million.

Gov. John Baldacci, Maine's congressional delegation, the Maine Department of Health and Human Services and the Maine Department of Education are joining with other states to oppose the federal changes. Baldacci is also working with affected providers to restructure programs in order to continue services.

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