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Appropriations committee moves MaineCare cost adjustments, hospital tax base change and COLAs for direct‑care workers
Summary
The committee approved language changing the hospital tax base year, additional funding lines for MaineCare hospital costs and a 3% ongoing COLA for direct‑care workers beginning 01/01/2027; members debated retroactive hospital tax timing and whether to park $22M into a MaineCare stabilization fund.
The committee approved several health‑care related items in the supplemental package, including a hospital tax base‑year change, increased MaineCare appropriations to reflect cost trends, and a 3% cost‑of‑living adjustment for direct‑care workers.
Representative Gutin moved language to change the hospital tax base year for the hospital tax from FY2022 to FY2024; the change is effective beginning with the May 15, 2026 payment. Members then debated an amendment offered by Representative Jack Ducharme to remove a proposed $11 million retroactive demand in 2025 on hospitals. Ducharme said many hospitals have limited cash on hand and a $11M retroactive payment due by June 30 could threaten viability. The amendment failed, and the committee carried the underlying motion.
Separately, the committee considered a substantive bookkeeping proposal from Representative Gutin to move $22 million into the MaineCare stabilization fund to reflect that earlier one‑time general fund expenditures (including payments for public defender attorneys) should instead be handled through stabilization accounting. Members pressed for clarity about how much remains in the MaineCare stabilization fund (one estimate cited in committee was about $30 million) and whether parking more reserve money there was necessary; debate touched on statutory criteria for using the general stabilization fund.
The committee unanimously approved language to provide a full 3% ongoing COLA (LD 1932) for certain MaineCare provider categories starting Jan. 1, 2027. Committee members noted the FY27 half‑year cost and the larger recurring biennial impact.
Next steps: The approved lines and language will be consolidated into the supplemental budget for further floor consideration and implementation planning with DHHS and OFPR.
