AUGUSTA – Lawmakers have a week longer than they thought to avoid running out of money for MaineCare payments, due to two consecutive weeks of lower-than-expected payouts to providers. But despite the reprieve, members of the Appropriations Committee still hope to vote out a total budget for the rest of 2009 as well as 2010-11 on Monday.
About three weeks ago, the weekly payout from the state to service providers was $66 million, but for the past two weeks those payments have dropped to below $60 million, said Ryan Low, commissioner of Administrative and Financial Services.
“So the two weeks of being lower than expected has allowed us to hit the next cycle payment, due May 15,” he said. Previously lawmakers had been informed the accounts would dry up May 8.
The payouts are hard to predict because doctors have between a year and 18 months in some cases to apply for reimbursement for MaineCare services provided, said David Farmer, spokesman for Gov. John Baldacci.
“People have tried to analyze the numbers in the past to find a trend, but there isn’t one, other than that April and November tend to have the highest payouts,” he said.
Members of Appropriations have been working to close gaps in the current budget, fiscal year 2009, which ends June 30, as well as the $570 million gap in the biennial budget for fiscal years 2010 and 2011.
Only a solution to closing the 2009 budget gap is necessary to prevent a lapse in the MaineCare payments, but lawmakers have been working the 2009 and the 2010-11 budgets together.
Some have suggested it might be easier to separate the 2009 portion from the biennial budget package, but Rep. Sawin Millett, R-Waterford, said though it’s a possibility, it’s not necessary at this stage.
“As long as we continue to work constructively to close the $570 million hole, it makes sense to keep everything together,” said the committee’s ranking Republican.
Low said not much would be gained by taking additional time with the biennial budget.
“It makes sense to keep all three years together because so many of the proposals are connected,” he said. “The closer you get to June 30, the worse it gets, because on July 1, state government would shut down. I know that’s not a scenario any side wants.”
Some of the pressure felt by legislators due to the dwindling accounts has been relieved, but not all.
“You don’t want to cut it too close because the stakes are too great,” said Rep. Peggy Rotundo, D-Lewiston, who serves on the committee. “Sometimes deadlines don’t matter, but this really matters.”
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