Credit agency: Maine Medicaid vote could challenge budget

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FILE – In this Tuesday, Nov. 7, 2017, file photo supporters of Medicaid expansion celebrate their victory, in Portland, Maine. The credit rating agency Moody’s Investors Service says Maine voters’ decision to expand Medicaid might make it more difficult for the state to keep its budget balanced. Voters decided they wanted Maine to expand Medicaid to some 70,000 citizens in a public referendum on Tuesday. (AP Photo/Robert F. Bukaty, File)

PORTLAND, Maine (AP) — The credit rating agency Moody’s Investors Service has warned that the decision by Maine voters to expand Medicaid might make it more difficult for the state to keep its budget balanced.

Voters decided they wanted Maine to expand Medicaid to some 70,000 citizens in a public referendum on Tuesday. The state joins 31 other states in doing so, but it’s the first to expand via a public vote, despite criticism of the move from Republicans such as Gov. Paul LePage.

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Moody’s released a report on Wednesday that said the move “may increase budget pressure for the state.” The expansion will increase the state’s Medicaid costs by at least $55 million by the time it’s fully implemented in 2021, reported Moody’s, a New York-based business considered one of the “Big Three” credit rating agencies.

The state could also face risk based on what happens at the federal level, the agency stated.

“The larger risk to the state is that the federal government could reduce Medicaid funding,” the agency said in its statement. “If funding for the federal expansion program is cut or eliminated, Maine would face budget pressure if it decides to maintain similar levels of coverage.”

LePage has said he won’t implement the voter-approved expansion until it’s fully funded by the state Legislature. His office said on Wednesday it expects to see more critical reviews of the move from credit agencies. LePage called expansion “fiscally irresponsible” and “ruinous to Maine’s budget” on Wednesday.

About 268,000 people currently receive Medicaid in the state. Medicaid expansion supporters in at least two other states, Idaho and Utah, are also looking to get the question on public ballots.

A spokesman for Mainers For Health Care, which campaigned for the Medicaid question to pass, said LePage is touting the Moody’s report to drum up unfounded fears about the cost of expanding health coverage.

“National, multi-state, and single-state studies show that states expanding Medicaid under the ACA have realized budget savings, revenue gains, and overall economic growth,” said the spokesman, David Farmer.

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  • FrankE

    Come on Paulie, time to show off that big bag of tricks you seem to always reach into when extra funding is needed. When it comes to somehow coming up with a million dollars to pay for a no bid contract with about the shakiest phony out there, No problem just redirect funding from the poor, they’ll never miss it. How about those millions to pay back outstanding hospital debt. an outstanding gesture. Where did you find all that money? Now we have a project that is guaranteed to keep thousands of Mainers alive for the foreseeable future, Just 54Million dollars. We’re talking real lives here. Not just numbers which everything seems to become with politics.

    If this was something you truly wanted to do you would find a way. This whole thing is a vendetta against anything Obama, especially if Trump agrees. I wouldn’t be quite so upset with this failure if it weren’t about saving lives. Republicans must not be capable of showing empathy, it’s all about where the money fits best. Saving the lives of Maine’s poorest residents isn’t to high a priority for this administration. No there are to many high rollers pockets to be lined out there before the next elections……………