AUGUSTA (AP) – Spending patterns within the state’s Medicaid program could result in an annualized shortfall of more than $100 million unless adjustments are made, the Legislature’s Appropriations Committee was told Wednesday.
Baldacci administration officials effectively let the committee staff estimate stand while saying a variety of measures already taken or planned, combined with other possible options, could keep subsidized medical services for eligible Mainers on track.
Commissioner Rebecca Wyke of the Department of Administrative and Financial Services said Medicaid-related budget problems were being treated as “just the next challenge that we’re facing.”
Previously the administration identified a long-running human services funding deficit potentially amounting to tens of millions of dollars. Further analysis of that matter is expected from outside examiners soon.
On Wednesday, lawmakers pressed for more budget details even as Wyke and other administration officials suggested immediate, short-term and longer-term actions that could be taken, ranging from improved efficiencies in state operations to the capture of additional federal money.
Director Trish Riley of the Governor’s Office of Health Policy and Finance said the implementation of the Baldacci-championed Dirigo Health initiative could help ease Medicaid-related problems.
“Dirigo is the solution that you enacted,” she said.
The new program is designed to promote health coverage through private insurance carriers to individuals, small business and the self-employed.
Baldacci administration officials say the Medicaid weekly payment cycle has been running about $1 million above last year.
The lead House Republican on the Appropriations panel, Rep. Richard Rosen of Bucksport, said he hoped the committee would be able to talk directly to federal officials as part of its review of DHS financing.
“The feds are the majority partner in Medicaid programs,” Rosen said. “They fund two-thirds of the bill. … These are big problems and you can’t operate in isolation.”
The state treasury ran up a healthy surplus for the first quarter of the fiscal year – that is, through Sept. 30 – but Baldacci administration officials regard much of it is as merely temporary.
AP-ES-10-15-03 1435EDT
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