UPDATE: Maine House approves LePage hospital repayment plan

AUGUSTA — The state Senate unanimously passed a bill that uses funds from the state’s wholesale liquor business to finance a bond to pay off Maine’s $183.5 million hospital debt.

The debt, which arises from services provided under MaineCare, the state and federal health insurance program for low-income individuals and families, triggers another $300 million federal matching payment.

The debt repayment plan was first offered by Gov. Paul LePage five months ago. In May, LePage vetoed a bill that included his payment proposal because it also expanded the state’s MaineCare program, making an estimated 70,000 childless adults eligible for the program.

The Senate passed the legislation without debate and “under the hammer” late Wednesday night.

The bill will move next to the House and will face at least on additional vote in the Senate before going to LePage for his signature.

A news statement issued by Senate Democrats late Wednesday said the measure, if approved before Oct. 1, will save the state an estimated $5 million as the federal matching rate for the services provided will decrease then.

“We cannot use political reasons to dodge paying our hospitals,” Senate Majority Leader Seth Goodall, D-Richmond, said in a prepared statement. “We are all in agreement that we will make our final payment to the hospitals, which is exactly what today’s vote will do.”

Goodall noted the previous bill sent to LePage and urged him to accept the bill, which is largely LePage’s proposal.

Democrats in the Legislature have also been quick to note that prior legislation passed under former Gov. John Baldacci set the state on a pay-as-you go system and, except for the debt it hopes to now pay, its bill for hospital services under MaineCare is current.

“Over the last decade, Maine hospitals have been paid $3.7 billion in combined state and federal dollars to repay past debt and to maintain services,” according to a statement from Senate Democrats.

 “The time to pay back the hospitals is now,” Goodall said. “This is the Legislature’s second attempt and we hope, this time, the Governor will join us getting this done.”

LePage has also promised that once the hospital-debt package is approved that he will sign off on about $200 million in voter-approved bonding that’s aimed at road and bridge repair and construction around Maine, as well as other community and economic development projects.

Combined, the legislation and bonds would pump nearly $700 million into the state’s economy.

The Senate’s action comes just a day after the Legislature’s Appropriations and Financial Affairs Committee unanimously approved the bill.

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