Maine files lawsuit over Medicaid rules

AUGUSTA – Maine is joining three other states in a suit against the federal government over new Medicaid rules.

Maine Attorney General Steven Rowe said Medicaid case management rules would harm Medicaid enrollees and cost Maine’s General Fund $16 million.

The suit filed in U.S. District Court in the District of Columbia names the Department of Health and Human Services and Secretary Michael Leavitt as defendants. Rowe said Maryland, New Jersey and Oklahoma are joining Maine in the suit.

The states allege that portions of the revised rules violate the 2005 Deficit Reduction Act and parts of the Social Security Act.

Jeff Nelligan of Medicare and Medicaid Services said the government has no response at this time.

The federal department has maintained that the case management rules were revised in part because of improper billing of Medicaid by the states.