Budget errors uncovered at DHHS

WCSH6.com | Portland, ME | Budget errors uncovered at DHHS

AUGUSTA, Maine (NEWS CENTER) -- Gov. Paul LePage's office says the new leadership at the Maine Department of Health and Human Services has uncovered millions of dollars in budgetary errors.

DHHS Commissioner Mary Mayhew addressed lawmakers about three of the problems on Thursday. Mayhew discussed a $66 million in over-budget payments to Maine hospitals, a $10 million jump in weekly claims to MaineCare providers, and a $29.7 million payment back to the federal government.

The Governor's office said when DHHS switched to a new claims processing system in September 2010, the department failed to make changes to hospitals' weekly Prospective Interim Payments to account for what was being paid through the new processing system. As a result, DHHS is on track to overpay hospitals by $119 million by the end of the year. Mayhew says DHHS is contacting hospital officials on Thursday announcing immediate changes to stay with the budget for the rest of the fiscal year.

Mayhew also told legislators that in the last six weeks, payments made to MaineCare providers have increased from an average of $39 million per week for the first 24 weekly payment cycles to $49 million. If the trend continues, MaineCare will could exceed its annual budget by $30 million or more. DHHS has let the legislature know of the increase in payments and potential impact on the fiscal year's budget. Changes may also be required in LePage's 2012-13 budget proposal.

DHHS also lost an appeal with the U.S. Department of Health and Human Services which would require the state to pay back a $29.7 million federal reimbursement for services for children in foster care and child protective services. Mayhew says DHHS is considering filing another appeal in federal court and working with Medicare and Medicaid on changes to its Targeted Case Management policy.

The governor's office says the management staff is continuing to investigate the problems at DHHS and make changes to better administer the department's programs.

"We knew we faced many challenges with the Department of Health and Human Services when we took office," said Gov. LePage. "Commissioner Mayhew and her new leadership team are finding a disturbing number of problems at the Department that we have to address. Additional audits and reviews are being conducted and we will promptly disclose new information as it is developed."

NEWS CENTER