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Budget Update: Key Victories for Long Term Care Providers

On Wednesday, the Maine Legislature passed a $320 million Part 2 budget, adding to the $11 billion continuing services budget approved in March. Thanks to strong advocacy from MHCA and its members, the final budget includes several important wins for long term care providers.

Highlights for Our Sector:
  • $20 Million to Support Nursing Facility Rates
    The budget includes $20 million (state and federal) over the biennium to preserve the nursing facility rate structure established through recent rate reform. This was one of MHCA's top legislative priorities, and its inclusion marks a critical success.
  • Cost-of-Living Adjustments (COLAs) Secured
    Although the original budget proposal included no COLAs for providers, MHCA joined a strong coalition to help restore and expand funding. The final budget provides:
    • A 1.95% COLA in the continuing services budget, which applies to certain provider types such as residential care and adult family care homes.
    • An additional 1% COLA in the Part 2 budget for many MaineCare provider sections, including nursing facilities, residential care facilities, and adult family care homes.
Current guidance indicates that PNMI-Cs will receive their COLA in July 1 rate letters, while nursing facilities are expected to see theirs in January. However, these exact details will become clearer as the budget is implemented, which will be 90 days after adjournment.
  • Harmful Policy Language Defeated
    Proposed language in Part UU that would have ended the two-year rebasing schedule and made COLAs optional at the discretion of DHHS was successfully removed. We expect these ideas may return in future sessions or rulemaking, and MHCA will remain engaged.
What's Next
The budget now heads to the Governor, who is expected to sign it. Next week, the remaining bills on the Special Appropriations Table will be finalized. Most are unlikely to advance due to limited available funding.

Your Advocacy Made the Difference
This session's outcomes - preserving funding for rate reform, securing COLAs, and stopping an unfunded staffing mandate - were made possible by your continued efforts. Whether you submitted testimony, reached out to legislators, or joined us at the Hall of Flags, your voice helped protect access to care across Maine.

Thank you for being part of this work.

Staff contact: bhawkins@mehca.org

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