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September 27, 2007

Feds: No Medicaid $ for Dirigo

The federal government recently told the state it could not use Medicaid matching funds to support the state-run DirigoChoice health insurance program.


The state may have to repay more than $255,000 in matching funds it used for 81 Medicaid-eligible people already enrolled in the program, according to the State House News Service. The recent decision means the program's sole source of revenue will be a controversial fee assessment charged to Maine's private insurers. Revenue set for this year and next from the savings offset is only enough to allow DirigoChoice to cover the 15,000 people already enrolled in the program.

DirigoChoice will be out of money by Feb. 2009 if the program cannot find another source of funding, the news service reported. The state is appealing the federal Medicaid ruling.

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