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April 16, 2009

Medicaid could run dry in May

By Mainebiz News Staff

Maine's Medicaid program will run out of funding by May 8 unless federal stimulus funding arrives soon.

Brenda Harvey, commissioner of the Department of Health and Human Services, and finance chief Ryan Low told the Committe on Appropriations and Financial Afffairs that they're hopeful the funding will arrive in time to avoid any disruption to the program, The Times Record reported. Legislators learned last month that DHHS accounts were short $65 million for the 2008-09 fiscal year, with much of the shortage due to increased demand for services as a result of the poor economy.

Gov. John Baldacci has proposed using $65 million of Maine's Medicaid stimulus share to address the shortage and another $40 million in each of the next two years to address future needs. Maine is set to receive more than $334 million in enhanced Medicaid funding, the paper reported.

 

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