The federal government approved a reduction in the number of people who qualify for the programs. The plan eliminates health care benefits for parents with children on MaineCare earning more than 133 percent of the Federal Poverty Level, or about $17,000 a year.
There will also be a 10 percent reduction for seniors in the Medicare Savings Program.
The federal government denied the state's request to eliminate eligibility for 19 and 20-year-olds, as well as a request to further reduce coverage for parents living on $15,000 a year or 100 percent of the poverty level.
These reductions mean at least 12,500 people will be dropped from MaineCare and lose their health care benefits. It also means more than 5,000 seniors will no longer get help paying for their prescription drugs.
The Department of Health and Human Services said these changes will help save the state roughly $4 million. DHHS Commissioner Mary Mayhew said, "We are pleased to now have a decision. We are certainly disappointed that they did not approve the entire plan that was submitted that would have allowed the state to save in excess of $19 million in the state's Medicaid program."
At the state house Tuesday, Maine democrats called the $4 million "false savings," saying it will ultimately hurt Maine seniors. They say it is a far cry from the $100 million dollars overspent my MaineCare this fiscal year. It will now be up to the governor and the Appropriations Committee to find a solution for the massive MaineCare debt.
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