For Members of the Maine Health Care Association – January 12, 2009

Oppose Mandatory Monthly MaineCare Billing as proposed

in LD 45, the supplemental budget bill; Urge Legislators to Ensure DHHS Has Plan to Keep Facilities Financially Viable

MEmbers should contact lawmakers on the health & human services

and appropriations committees immediately–

Work Session on long term care is Wednesday, Jan 14th at 1:00 pm

As previously reported in the MHCA E-News, LD 45 contains proposals that would limit MaineCare billing to once a month for participating nursing homes and residential care facilities. The majority of our members bill on either a weekly or biweekly basis and moving to a monthly schedule will create financial hardship for many providers. By postponing June’s provider payments into July 2009, DHHS anticipates saving around $7 million for this fiscal year.

The Health and Human Services Committee will be working this item of the budget on Wednesday and will report its recommendations back to Appropriations by the end of the week. Using the following talking points and contact list, please make your contacts today. Please contact Rick Erb or Nadine Grosso at MHCA at 623-1146 or or if you have any questions or comments.

Consider the following talking points, fill in the blanks and personalize to your facility:

  • My facility bills on an XX basis. Moving to a monthly payment schedule will create severe cash flow problems for my facility.
  • My facility relies on MaineCare for about XX% of its overall revenue and we run payroll on a XX basis. Limiting the majority of my reimbursement to once a month will make it difficult, maybe even impossible, to meet my payroll obligations.
  • I am very concerned that DHHS does not appear to have a contingency plan to make emergency MaineCare funding available to those providers who may need it if this proposal is implemented.
  • Facilities who are highly or completely dependent on MaineCare for their funding will be most negatively impacted by this change.
  • Forcing providers to rely on lines of credit to subsidize the MaineCare program is not part of a fiscally responsible business plan. MaineCare should treat any expenses incurred from taking this action as a reimbursement pass through.
  • I am concerned about my ability to obtain a line of credit to cover shortfalls.
  • My line of credit is already stretched to the limit and without state assistance, I don’t know if I can obtain additional credit in the current economic environment. The state should step in to ensure that all facilities have access to short term financing.
  • I have already maxed my credit terms with my vendors and suppliers. Accounts that are more than 30, 60, 90 days out incur interest and late fees. At some point, vendors will be unwilling or unable to deliver goods and supplies until our account is in good standing.
  • At a minimum, please consider providing assistance to facilities that require financing. This could be in the form of state provided or guaranteed working capital loans.
  • If the State considers phasing in the plan, DHHS need to be ready to support providers on an emergency basis. Even with a phased in plan, there are providers who will not be able to meet their financial obligations and will turn to the State for help. This will be a short term solution since DHHS still intends to implement monthly billing by 2010 as part of the new claims management system.

Appropriations and Financial Affairs Committee
5 State House Station, Augusta, ME 04333-0005, Hearing Room and Chairs’ Office: Room 228

Senators:
NameDistrictHome Phone Number

G. William Diamond, Chair (D-Cumberland)12892-8941

Margaret M. Craven (D-Androscoggin)16783-1897
Richard Rosen (R-Hancock)31469-3779

Representatives:
NameDistrictHome Phone Number

Emily Ann Cain, Chair (D-Orono)19866-3753

John L. Martin (D-Aroostook)1444-5556
David C. Webster (D-Freeport)106865-4311

Margaret Rotundo (D-Lewiston)74784-3259

Elizabeth S. Miller (D-Somerville)52549-7171
Gary A. Connor (D-Kennebunk)140985-5799
H. Sawin Millett, Jr. (R-Waterford)*95583-4842
Robert W. Nutting (R-Oakland)78465-7139

Patrick S. A. Flood (R-Winthrop)82395-4915
John C. Robinson (R-Raymond)103655-8657

E-Mail Distribution - Appropriations:

Senator G. William Diamond

Senator Margaret Craven

Senator Richard

Representative Emily

Representative John

Representative David

Representative Margaret

Representative Elizabeth S. Miller

Representative Gary A.

Representative H. Sawin

Representative Robert

Representative Patrick

Representative John


Health and Human Services Committee
100 State House Station, Augusta, ME 04333-0100 Hearing Room and Chairs’ Office: Room 209, State Office Building - phone (207) 287-1317
Senators:
NameDistrictHome Phone Number
Joseph C. Brannigan, Chair (D-Cumberland)9772-6047
Lisa T. Marraché (D-Kennebec)25861-0154
Peter Mills (R-Somerset)26474-3821

Representatives:
NameDistrictHome Phone Number
Anne C. Perry, Chair (D-Calais)31454-7338
Patricia R. Jones (D-Mount Vernon)83512-5102
Mark Eves (D-North Berwick)146676-1001

Matthew Peterson (D-Rumford)92767-2189

Linda Sanborn (D-Gorham)130839-4664

Peter Stuckey (D-Portland)114773-3345
James J. Campbell, Sr. (R-Newfield)138793-2396
Sarah O. Lewin (R-Eliot)148439-0354

Meredith N. Strang Burgess (D-Cumberland)108829-6264

Donald G. Soctomah (Passamaquoddy Tribe)n/a214-7727
E-Mail Distribution - Health and Human Services:

Senator Joseph
Senator Lisa

Senator Peter

Representative Anne C.

Representative Patricia

Representative Mark Eves

Representative Matthew

Representative Linda Sanborn

Representative Peter Stuckey
Representative James J.

Representative Meredith N. Strang

Representative Sally

Representative Donald G.

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Maine Health Care Association Action Alert