Dissecting the Supplemental: Health & Human Services
January 28, 2010 -
Most people in Maine are aware that we are faced with a $438 million shortfall in revenue. Governor Baldacci submitted a supplemental budget in December that cuts heavily from education and health and human services and forces additional efficiencies in state government, but does not raise any additional revenue.
Too often, the public is left out of these important decisions. Last week, I discussed in detail the proposed cuts to education. This week, I'll discuss Health and Human Services. This agency is receiving the largest potential cut in the 2010-2011 supplemental budget with a potential loss of $128.3 million.
MaineCare Reductions
MaineCare will see the lion's share of the DHHS cut, coming in at $108.5 million. The majority of potential reductions are coming from a 10% reduction to MaineCare providers and from pushing the last payment of MaineCare from 2011 to 2012. This will save us $49.8 million in 2011. Physician reimbursements are being reduced an additional $1.5 million.
Development and Assistance Services
Development Services within MaineCare will see a $12.2 million reduction, and Adult Mental Health Services and Children's Services within MaineCare will receive a cut of $1.7 million each. This means a total reduction of $15.6 million to developmental and assistance services. Within other departments of DHHS, Development Services will receive a $1.8 million cut, Adult Mental Health will receive a $6.7 million cut, and Children's Services will receive a $2.2 million cut. This brings the entire supplemental cuts to Development and Assistance Services to $26.3 million over the biennium.
Hospitals
Hospital initiatives will save us $18.6 million over the biennium. Hospitals will either have to decrease services or increase costs at a time when health care is already far too expensive.
Other Health & Human Services Cuts over the Biennium
-Social Security COLA Distribution - $8 million
-Elder Services - $4.7 million
-Public Assistance Savings - $1.4 million
-Social Service Programs - $800,000
-Substance Abuse Programs - $600,000
-Public Health Services - $500,000
