DHHS must get a handle on budget shortfall

Mary Mayhew, commissioner of the Maine Department of Health and Human Services, needs to get a grip on that department’s finances or Gov. Paul LePage needs to find someone who can.

Mayhew told the Legislature’s Appropriations Committee last week that her department’s funding deficit had jumped by $50 million over the course of two weeks.

Mayhew said the shortfall was created by a combination of factors, including a 2011 budget that was inadequate and a balky computer system that makes it difficult to track reimbursement claims.

Her vague answers did not inspire confidence on the Appropriations Committee.

At the time of her appointment, Mayhew seemed like an experienced, well-qualified person for the job. She had been a health-care lobbyist, was on Gov. Paul LePage’s transition team and has now spent 10 months atop the troubled department.

It takes some time for anyone to settle in. But 10 months?

“We don’t know if these numbers are credible at this point,” state Rep. Peggy Rotundo, D-Lewiston, told the Sun Journal. “We know there’s a shortfall, but we don’t know what the shortfall is or what’s driving it.”

And that’s dangerous for a Legislature that will soon have to consider a supplemental budget request to help close the gap.

Rotundo worries that incorrect numbers could stampede the Legislature into making cuts that will hurt Maine’s young, old and disabled residents.

In the absence of firm figures and solid explanations, alternative theories abound.

Some suspect the numbers are being intentionally skewed to justify large cuts LePage would like to make to DHHS programs. In other words, this could be a crisis manufactured for political leverage.

We hope that’s not the case.

To state Sen. Margaret Craven, D-Lewiston, the culprit may be inexperienced DHHS leadership, which sounds more likely.

Over the past year, Mayhew has fired 10 top managers in the department in what LePage spokeswoman Adrienne Bennett described in August as a “cultural change.”

Those firings included Tony Marple, director of MaineCare Services, who was widely respected for his expertise.

“I would say they are not able and don’t have the skilled staff to make the projections,” Craven told the Sun Journal.

Perhaps most troubling is the way the state’s computer system is costing taxpayers money.

That system has failed to meet federal standards since 2005. Since it is out of compliance, the federal government reduces Maine’s reimbursement rate for services by 25 percent.

While other states get more help, Maine taxpayers are left making up the difference for the department’s incompetent computer.

The fault for that lies with LePage’s predecessor, former Gov. John Baldacci, and it has been a well-documented embarrassment for years.

Why isn’t fixing that system a higher priority?

LePage and the Legislature have made a priority of reducing welfare costs, and Maine voters have expressed a clear desire to do so.

It is, of course, the governor and Legislature’s rightful role to determine just how generous the state can afford to be.

But that frank discussion is impossible unless DHHS can provide reliable information for policymakers to consider.

rrhoades@sunjournal.com

The opinions expressed in this column reflect the views of the ownership and editorial board.

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Displaying comments, from newest to oldest

Robert61's picture

LePage and staff inherited

LePage and staff inherited this mess because people like Rotundo and Craven were asleep at the wheel for years, ingorning bigger problems while adding more and more programs and benefits that this state cannot afford to maintain. The biggest problem with the computer system is it was never designed to handle the complexity of Mainecare - one of the most cumbersome confusing systems any state has.

Jason's picture
verified

Not totally disagreeing, but...

I want to know why the numbers are jumping all over the place. A 50 million jump in two weeks is a massive increase, and I want to know why. If they found, as they said, a "combination of factors", I am curious as why such big things went unnoticed. I want it explained as to how they were missed.

It smells fishy.

Robert61's picture

Jason, while I would be the

Jason, while I would be the last to defend the department, sometimes jumps like these can be explained, and I'll give you a couple examples - first many providers bill on a monthly basis for all services the prior month and are required by law to do it in that manner - so the system sees major problems in handling a large load of claims and it sees a MUCH larger payment cycle once every 4-5 weeks when this occurs. Secondly, the state has been behind on finishing cost reports and provider audits and when you pay out any settlemens due it hits all at once - and in some cases multiple years could be settled all at once. Lastly, there is still work going on to settle claims under the old system - and SOME providers are only looking at claims owed them and not paying back overpayments as promptly as they should. Is it OK for a provider to owe the state money now for services in 2005? Sadly no one wants to research and we all know why - someone might have lots of explaining to do....Now I'm not saying any of these isues actually happened in the past few weeks , but......and before you ask, the info was also offered to a reporter who declined.

Jason's picture
verified

Disagree?

So, who ever disagreed, you don't want to know why this stuff was missed?

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