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Tuesday, December 6, 2011

MHPC Applauds Governor LePage's Supplemental Budget Proposal



Bringing Maine more in line with national averages will save state
hundreds of millions
 
PORTLANDThe Maine Heritage Policy Center is praising the Governor’s new plan released today that will address the expected DHHS budget shortfall of more than $200 million over the next two years. LePage’s plan makes changes in the eligibility requirements for Maine’s Medicaid program, including ending the practice of allowing adults with no children to be eligible for Medicaid benefits, something only 7 states allow. The plan also redesigns some benefits offered to those who are eligible by eliminating some benefits like chiropractic services and smoking cessation products that are not federally mandated.
 
“This is a fiscally responsible, common-sense approach to begin addressing the budget challenges Maine faces,” said Lance Dutson, CEO of the Maine Heritage Policy Center. “For too long, Maine has been an extreme outlier in the generosity of our taxpayer funded welfare benefits, and bringing Maine more in line with our fellow states is the right place to start. Our research shows, if enrollment in welfare programs continues at the current rate, Maine is on pace to have more people on welfare by 2013 than are working in private sector jobs – this is an abomination, and we just can’t let that happen.”
 
The plan will help reduce Maine’s per person Medicaid cost, which is far above the national average. Maine’s per person cost was $1,895 in 2009, while the national average was $1,187.
 
“For too long welfare spending has gone unchecked, and the Governor is doing Maine a service by reining it in,” Dutson continued. “By addressing the budget shortfall with spending reductions, instead of increased taxes like past administrations have done, Governor LePage is freeing up Maine’s businesses and entrepreneurs to invest more in growing and creating new jobs. This will provide needy Mainers with more job opportunities that can provide them with sustainable support and long-term economic freedom.”

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