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The Maine Department of Health and Human Services has issued $30 million in MaineCare payments to help dozens of nursing homes across the state tackle rising costs and workforce challenges stemming from the pandemic.
The state and federal funds, provided through the supplemental budget passed by the Legislature and signed by Gov. Janet Mills in April, were distributed to 77 eligible nursing facilities based on each facility’s MaineCare costs and hours of care provided in 2023.
MaineCare is the state's Medicaid program, the public, nationwide form of health insurance — primarily funded by the federal government — for Americans with low incomes or certain disabilities.
The Maine nursing facilities that received payments last week had to be in operation and serving residents as of Sept. 1, according to a DHHS spokeswoman.
“This $30 million ‘extraordinary circumstance allowance’ payment means Maine’s nursing facilities can use this funding to offset both past and expected costs, including for direct care staff, capital costs and other expenses,” said Sara Gagné-Holmes, Maine’s acting commissioner of the department.
As with other supplemental payments the department has issued to nursing facilities, the funding aims to help put the industry on solid footing and support patient care.
Angela Westhoff, president and CEO of the Maine Health Care Association, said the move comes as nursing homes continue to struggle with inflation and historic labor shortages.
“We're hopeful that next year’s reformed reimbursement model will provide the sustained resources needed to ensure that Maine’s older adults continue to have access to the care they deserve,” she said.
Updated MaineCare reimbursement rates for nursing facilities are set to take effect at the start of 2025. The reforms aim to discourage long-term use of temporary staff and promote permanent employment and salaries of nurses and nursing assistants.
The reforms are funded through the supplemental budget, which includes a new Nursing Facility Reform Transition Fund to support nursing facilities as MaineCare phases in the rate changes.
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