Legislature passes measure to restore funding for mental health, protect services in small rural hospitals

March 31, 2008

AUGUSTA – The Maine House passed a measure on Monday night to restore proposed cuts to mental health services, prevent cuts in reimbursements to hospital-based physicians who care for patients through the State’s MaineCare program, and adjust the hospitals’ tax structure in order to draw down more support from the federal government.

The bill, which was sponsored by Farmington Democrat Janet Mills and championed by House and Senate Democrats, had bipartisan support in both chambers. The House and Senate had adopted it as an amendment to the state budget as proposed by Mills, but the governor said that he would not support it through the budget, only as a separate bill.

Immediately after passing the supplemental state budget Monday night with the Mills amendment stripped, the House and Senate took up a new bill containing identical language and passed it quickly through both chambers. It will now go to Governor Baldacci, immediately after the budget, who has said that he will sign it into law.

“ The people who count on Franklin Memorial, and other rural hospitals across Maine ought to be able to rely on the state to pay for the life-saving services they provide,” said Mills. “It’s necessary for them to provide quality care to everyone in the region, and to keep overall health care costs down. And the services that were on the chopping block for people with mental illnesses and retardation were especially hard to imagine.”

The bill will recover funding for mental health services that had been cut in the state budget, including crisis services, community integration and home care for people with mental illnesses and mental retardation.

The bill also prevents a proposed cut in reimbursements to physicians who serve MaineCare patients in hospitals. The state pays for those services at specific rates, and the Governor had proposed a reduction in those rates in his budget package. Many rural legislators -who represent districts with more MaineCare patients - were worried that the cut to reimbursements would hurt the hospitals in their district and have a negative impact on services for all hospital patients.

The bill restores the cuts to mental health care and hospital reimbursements by rebasing the tax structure for hospital in order to draw down more federal matching funds.

“ It’s a win-win situation, and I’m glad that we were able to move it through along with the state budget,” said House Majority Leader Hannah Pingree, D-North Haven. “This has been a challenging budget, and we were forced to make some cuts that we really didn’t like. We had an opportunity to save some of them with this measure, and rural Democrats led the charge.”

The Senate passed the bill immediately after the House, and sent it to Governor Baldacci for his signature.

Contact:

Travis Kennedy, Communications Director, 287-1433

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