News

LePage Administration Cuts Medicaid Contract with Firm

LePage Administration Cuts Medicaid Contract with Firm

Photo: clipart.com


AUGUSTA, Maine (AP)   In a story July 13 about Maine’s evaluation of disability claims, The Associated Press reported erroneously the make-up of a team that evaluated the claims. The claims were previously evaluated by 10 employees of the state of Maine, not a contractor. The story also should have clarified that the contract will now end next year.

A corrected version of the story is below:

Gov. Paul LePage’s administration is terminating Maine’s contract with a Massachusetts-based firm that was helping with the state’s Medicaid application process.

Bangor Daily News reports the administration has ended a contract with Commonwealth Medicine that will now end next year. The Shrewsbury company had previously agreed to a 25-month contract worth $5.6 million from the Maine Department of Health and Human Services.

The LePage administration selected Commonwealth Medicine without evaluating other bids. Maine previously had a team of 10 state employees who performed this work. The LePage administration then chose Commonwealth Medicine to take over that work and eliminate the state employees’ jobs.

Taxpayers were slated to pay $300,000 more annually for the contracted work compared to using state employees. Costs also went over the budget prepared by the DHHS.

DHHS spokeswoman Emily Spencer said in an email ending the contract allows the administration to `”explore other service opportunities.”

Latest Headlines

7 hours ago in National, Trending

Flight cancellations and delays worsen as government shutdown drags on

The pain Americans are facing at airports across the country is expected to get worse this week if Congress is unable to reach a deal to reopen the federal government.

16 hours ago in Local

Maine’s King Among Senators to Break Shutdown Deadlock

The Senate voted 60-40 to move toward passing compromise legislation to fund the government

17 hours ago in Local

Mills Slams Trump Administration’s Move to Block SNAP Benefits

Mills made the statement Sunday after the Supreme Court late Friday temporarily blocked a lower court’s order for SNAP funding to be distributed.

21 hours ago in Local

Wells Police Investigate Rash of Overnight Vehicle Burglaries

Police are asking Wells residents and businesses in the area to review any available video footage.

22 hours ago in Local

Dixfield Sawmill Heavily Damaged by Fire

The Maine Fire Marshal's Office assisted with the investigation.