Proposed state Medicaid cuts assailed Recipients, health care providers protest Baldacci administration’s plan

AUGUSTA – Baldacci administration proposals to cut a host of Medicaid programs as part of balancing the state budget drew expressions of anguish and outrage Thursday at a lengthy public forum.

Medicaid recipients and the health care providers who work with them turned out in force to protest. The crowded public forum was held by human services officials who are contemplating a Jan. 20 implementation of many of the proposed changes.

Facing a budget shortfall in excess of $100 million, Baldacci has rolled out a series of potential reductions in Medicaid spending. From an original level of close to $10 million, the governor now is seeking Medicaid program savings and additional revenue worth more than $20 million.

The immediate shortfall is projected for the current fiscal year, already more than half over.

“So, we’ve got to make the savings, remember, between now and June,” top Baldacci health policy aide Trish Riley told the overflow audience Thursday.

Pharmacy industry representatives who launched a campaign in advance of the forum to block a cut in dispensing fees they receive joined other critics of the looming cutbacks.

Others of those testifying told wrenching tales of personal health problems that could be exacerbated if certain state programs are curtailed.

Medical treatments and procedures that found defenders ranged from obesity surgery to impacted earwax removal as opponents complained that ill-considered targets represented penny-wise, pound-foolish thinking.

“Bunion surgery has absolutely no place at all on this list,” Dr. Scott Schiff-Slater, a Medicaid provider in Hallowell, said in his prepared remarks.

Describing “painful deformities of the feet that interfere with the ability to walk,” Schiff-Slater said, “only people without bunions could have added this to the list.”

Baldacci administration officials have said repeatedly that they would welcome alternative proposals for savings.

The Maine Hospital Association’s vice president for government affairs, Mary Mayhew, said her organization was open to talks but did not want to be a party to the development of further reductions in payments to its members.

Citing a newly proposed billing change estimated to cost hospitals $8.5 million, Mayhew said, “this is a huge cut on top of the $56 million in payment cuts to hospitals in the biennial budget.”

The Legislature’s Appropriations Committee is scheduled to begin its own review next week.

Democratic Sen. Joseph Brannigan of Portland, the House chairman of the Appropriations Committee, said there was a chance lawmakers could head off some of the proposed cuts.

“Hopefully we will have help from the governor and leadership to make a difference by the 20th,” he said.

House Minority Leader Joe Bruno, R-Raymond, said GOP representatives had a specific concern.

“We’re not supporting any cuts to providers – at least I think that’s what the caucus position is,” he said.

To offset a total budget shortfall of $109 million, the Baldacci administration is looking for $22 million in Medicaid adjustments.

A governmentwide sweep is being counted on for an additional $34 million. Another $29 million would come from a federal fiscal relief reserve fund, with close to $13 million more coming from an unclaimed General Fund surplus.

The administration also would apply toward the shortfall almost $11 million in surplus welfare and child support incentive funds from prior years.