Maine Governor's Statement on Proposed Changes to Medicaid Rules and the Impact on Maine

January 30, 2008 -- AUGUSTA – Maine Governor John E. Baldacci today released the following statement regarding proposed federal rule changes for Medicaid. The changes will reduce federal funding for significant programs for the elderly, persons with developmental disabilities, school-aged children and persons with mental illness.

“The proposed federal changes will have a disastrous effect on children and vulnerable populations in Maine,” Governor Baldacci said. “If these changes are allowed, families and elders will be put at risk, more people will end up in shelters, on the streets, in hospitals or in jail.”

“This is a short-sighted strategy that will increase costs in the long run. These programs are effective and compassionate, and lead to better overall outcomes. Every community in Maine will be hurt by these changes.”

“If the new Medicaid rules are imposed, they will damage not only our citizens but also the health care sector of our economy. While I support efforts in Congress to quickly pass a stimulus package to jump start our lagging national economy, the good it does will be limited by the damage done by these cuts.”

“Maine stands to lose significant federal funding, much of it for services that the state and local communities are required to provide,” Governor Baldacci said. “These changes will result in a significant shift of federal responsibilities onto the people of Maine. The impact of these cuts will be felt by people who depend on these services and by Maine taxpayers.”

“Given the uncertainty of the national economy and the $95 million revenue downturn we’re already dealing with, it will be difficult for Maine to replace the federal funding.”

“We have been working with the State’s congressional delegation, the National Governors Association and Rep. Henry Waxman, who is planning hearings on the changes, to oppose the proposed new rules,” Governor Baldacci said. “Unless Congress intervenes, these new rules will impact vulnerable children and adults across the country.”

The Departments of Health and Human Services and Education conducted a press briefing earlier today on the impact of the rule changes.

Source: Maine Governor

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