Tax committee tables dental‑provider tax credit after in‑depth review; members ask analysts to explore reopening earlier dentist credit

The taxation committee held an extended work session on LD 1652, a multi‑part proposal to increase access to dental care for MaineCare recipients. Office of Policy and Legal Analysis analyst Steve Langland summarized the bill in three parts: an income‑tax credit equal to a dental professional’s licensing fees and malpractice insurance costs up to $5,000; a directive for the Department of Health and Human Services (DHHS) to amend the MaineCare benefits manual to reimburse covered dental services at 75% of national state Medicaid rates and to reimburse dental case‑management codes; and the creation of three DHHS positions to support dental programs.

Langland told the committee the draft omits several commonly used limits: it does not specify whether the $5,000 credit is annual or one‑time, lacks a cap on the number of certified providers, and does not set a sunset period. He also flagged a statutory conflict: a directive to set reimbursement rates could conflict with the rate‑setting process in Title 22. He cited preliminary Maine Revenue Services estimates that the credit’s fiscal impact could be less than $1 million annually but noted that DHHS testimony suggested the reimbursement language could lower current MaineCare reimbursements, potentially reducing MaineCare dental spending by about $17.2 million and decreasing general‑fund dental payments by about $5.8 million as drafted.

Sponsor Representative Tara Stover, who said she works at a nonprofit dental clinic in Lincoln County, told the committee she aims to incentivize commercial dentists to enroll as MaineCare providers because some rural counties lack any commercial MaineCare‑participating dentists. "We are the only MaineCare accepting dental practice in Lincoln County because no commercial dentist will participate," Stover said. She acknowledged the $5,000 figure is modest and said she would be open to amending elements the committee suggested.

Members pressed technical questions: whether certification requires a minimum MaineCare patient threshold (it does not in the draft), whether the reimbursement language could unintentionally lower rates for existing providers, and how many providers remain eligible under an earlier dentist credit. Committee members recommended exploring reopening and adapting the earlier dentist incentive (which had a ramped credit structure and a cap on certified dentists) rather than creating a new flat $5,000 credit. The committee caucused, then voted to table LD 1652 to allow the sponsor and analysts to draft amendments, check geographic distribution of prior credit recipients and work on caps and sunset language.

Representative Anne Matlack moved to table the bill, Representative Laurie Gramlich seconded, and the motion carried unanimously among those present. The sponsor and analysts agreed to produce follow‑up materials for a future work session.