Copyright Portland Press Herald
Maine submitted its application Thursday to the federal government’s $50 billion rural health fund, a new program that will offset some of the impacts of upcoming Medicaid cutbacks. The Republican budget bill that passed in July reduced Medicaid funding for rural health by $137 billion over 10 years across the country, according to KFF, a national health policy think tank. The $50 billion fund — called the Rural Health Transformation Program — will offset some of those losses and will be distributed, starting in 2026, over a five-year period. The Medicaid cutbacks begin in 2027. U.S. Sen. Susan Collins, R-Maine, championed the inclusion of the rural health fund in the reconciliation bill, although she ultimately still voted against it because of the substantial Medicaid cutbacks. The bill passed by one vote in July. Maine stands to lose $5 billion in Medicaid funding — including in urban, suburban and rural areas — resulting from the Medicaid cuts, but could receive more than $500 million over five years from the rural health fund. The state’s rural hospitals are in a precarious financial position. The Center for Healthcare Quality and Payment Reform, a national think tank, has projected that half of Maine’s 24 rural hospitals are at risk of closing in the near future. Advertisement With the new federal funds, Maine would invest in a number of initiatives, including workforce development, technology improvements, expansion of telehealth, transportation, and help for rural hospitals. “Maine is taking bold steps to expand access to health care through innovative technology to improve the health of Maine people and by investing in rural health care providers and workers,” Gov. Janet Mills said in a written statement on Thursday. Steven Michaud, president of the Maine Hospital Association, said in a statement on Thursday that the application is a “balanced, thoughtful approach to transforming health care” with “collaborative and innovative projects.” This story will be updated
