AUGUSTA – Democratic lawmakers released the following statement in response to the governor’s continued effort to misinform the public about the cause of the DHHS shortfall and the figures his administration used to calculate them.

“The governor must stop spreading misinformation to the public and disrupting the Appropriations Committee,” said Rep. Emily Cain, D-Orono, the House Democratic leader. “It is irresponsible and it will undermine our efforts to address budget problems together. Solutions must be driven by facts and working across the aisle, not inflammatory distractions.”

“Democrats are calling to an end of the governor’s blame game,” said Senator Justin Alfond, D-Portland, the assistant Senate Democratic leader. “He’s been in office for a year now. It is the responsibility of this Administration to come up with an honest and fair plan based on facts not based on rhetoric or ideology. It’s clear now more than ever that the governor’s priority is to pick winners and losers in this state by rolling back anti-poverty programs and leaving our most vulnerable neighbors with nothing.”

Please note the governor’s statement on the DHHS shortfall released today included the following myths.

  • MYTH: The Office of Fiscal and Program Review verified the LePage Administration’s shortfall analysis.
  • FACT: Grant Pennoyer, director of the office, told the Appropriations and Health and Human Services Committees that “We are closer, but we are still a ways off from having a good enough understanding to provide independent confirmation of the shortfall,” as reported by the Bangor Daily News. The Legislature’s non-partisan fiscal office told the committees that the Department was on track to spend the $120 million over budget in fiscal year 2012, but they were unable to independently verify the costs for 2013 or to fully agree on the cost drivers for either year.
  • MYTH: The shortfall was caused by a growth in enrollment over the past decade.
  • FACT: According to the DHHS analysis of the shortfall of the $220 million shortfall, the total costs of increased enrollment in MaineCare is 6.5 million in 2012 and a projected $7.9 million in 2013. The shortfall has been caused by his administration’s miscalculations in building the budget, a transition from claims processing from one computer system to another and a change in how we make payments to providers. These are program administrative issues not program growth issues.
  • MYTH: MaineCare is welfare.
  • FACT: MaineCare provides health insurance and prescription drug coverage for the elderly, disabled, mentally ill and the poor.  Twenty-five percent of MaineCare enrollees work, 42 percent are children and 28 percent of enrollees are disabled individuals and seniors. Deprived of their insurance, their health will no doubt decline, unattended problems will become more severe and costs will be kicked down the road, not avoided. MaineCare has helped  Maine score eighth in the U.S. in overall health rankings. This high rate of insurance also means fewer uninsured patients turn up at emergency rooms for expensive care that is not reimbursable. When that happens hospitals must eat those costs, which results in costs that must then be passed on to the rest of us.