05/02/2025 | News release | Distributed by Public on 05/02/2025 14:56
May 2, 2025
As the U.S. Congress develops the federal budget, several proposals have surfaced to meet the stated goal of $880 billion in savings from the House Energy and Commerce Committee. Many of these proposals center on Medicaid, which provides health coverage to low-income individuals and families, older adults, and people with disabilities, nationwide. While these savings targets and resulting initiatives are not final and will likely evolve, it's important to understand how some of the proposed federal changes may impact MaineCare -- Maine's Medicaid program -- and the people it serves.
As of January 2025, roughly 392,000 Mainers were enrolled in Medicaid and the Children's Health Insurance Program under MaineCare.
MaineCare, like all Medicaid programs, is built on a state-federal partnership, with federal funding playing a central role in ensuring access to health care for Mainers of all ages. Currently, federal law ensures the federal government covers:
MaineCare supports a broad range of health care services across the state. The top funded services include:
In addition to its vital role in supporting public health, MaineCare also contributes significantly to family stability and the overall well-being of Maine's communities.
Continuing to ensure affordable, preventive care through this program supports:
A number of potential policy changes are being discussed at the federal level, including:
Maine has modeled the estimated impact of these potential proposals based on the limited proposal details available. For more detail on the potential impacts, please refer to The Impact of Proposed Federal Medicaid Changes on MaineCare (PDF).
The proposed changes to federal Medicaid funding would shift significant costs to states. Unlike the federal government, Maine is required to balance its budget each year, meaning increased health care costs at the state level will have significant implications, including potential reductions to services, eligibility, and reimbursement under MaineCare.
In addition, we know that Medicaid expansion led to a $126 million reduction in uncompensated care costs across Maine hospitals over the course of 2020 and 2021. Proposed federal changes to Medicaid could have ripple effects across the broader healthcare system. For example, cuts to Medicaid funding would likely result in increased uncompensated care for hospitals already facing financial strain, impacting the systems that so many Mainers rely on.
If these changes or some combination of them are implemented, they will have devastating consequences for lifesaving health care and access for Maine people. If enacted, these proposed cuts will:
The Department will continue to follow federal policy developments closely and remains committed to keeping stakeholders informed about any potential changes and the impact on MaineCare.