AUGUSTA, Maine (NEWS CENTER) -- An estimated 30,000 people will feel the effect of the budget cuts signed by the Governor on Thursday. That's according to Republicans in the State Senate.
The budget fills a $121 million hole in this year's budget, and makes significant cuts in two Medicaid programs.
14,000 parents with children in Maine Care will be dropped from the program, saving more than $7 million. The program for so-called "childless adults" will be frozen and capped at $40 million, which is half the current budget level. Republican staffers in Augusta say between 350 and 500 people move off that program in a typical month. Because no new people will be allowed to enroll, freezing it will shrink the program by attrition.
Among many other parts of the 2012 budget cuts are:
- Reductions and changes to optional services for everyone on Medicaid, including vision care, physical therapy and chiropractic care
- Changes in drug rules requiring more use of generics instead of name brand drugs
The budget also fills the 2012 hole through three other steps:
- A one time transfer of $10 million from the Dirigo Health program
- A $14 million dollar, one-time payment by hospitals
- Borrowing $59 million from next year's (2013) budget for one day, and then paying it back through an equal amount of specific savings during the year.
And lawmakers aren't nearly finished. The Legislature is now starting work to balance the 2013 Medicaid budget. That will require another $84 million in additional cuts to the program.
Leaders in both parties say this second round of cuts will be deeper, more difficult and likely affect far more people than the budget that was just signed. Some of those proposed cuts would ultimately require permission from the federal Department of Health and Human Services, which pays roughly two-thirds of the cost of Medicaid. Governor LePage has said he will ask DHHS Secretary Kathleen Sebelius for a waiver of a requirement called Maintenance of Effort to allow the state to reduce some programs. The Governor says three other states have asked for similar waivers, but so far none have been granted.
NEWS CENTER