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House Minority Leader Rep. Billy Bob Faulkingham, R-Winter Harbor, talks to reporters earlier this year on third floor of the Maine State House in Augusta. (Joe Phelan/Staff Photographer)

AUGUSTA — House Minority Leader Billy Bob Faulkingham, R-Winter Harbor, on Tuesday blasted Gov. Janet Mills’ response to the Trump administration’s investigation into MaineCare as “very inadequate,” “insulting” and “incredibly unprofessional.”

On Friday, the Mills administration provided a 47-page response to nearly three dozen questions from the U.S. Centers for Medicare and Medicaid Services about $45 million in improper payments found by a federal watchdog.

Central to the administration’s inquiry was what they described as a 54% increase in spending on autism services over four years. In a letter to CMS Administrator Mehmet Oz, Sara Gagné-Holmes, Mills’ top health official, said the spending increased because of higher reimbursement rates approved by the federal government. She also noted that the federal watchdog report flagging the potential improper payments did not include findings or allegations of fraud.

In a video statement, Mills dismissed Oz as a “TV doctor” known for “peddling fake supplements to the American people.” She said the inquiry was part of the administration’s politically motivated attacks on Democrat-led states.

Faulkingham said Mills sought to portray herself as a victim to avoid accountability. Hundreds of millions of dollars in federal funding are potentially at stake if the Trump administration decides to withhold Medicaid money from Maine.

“It signals a defensive posture,” Faulkingham said at a news conference Tuesday morning. “The federal government is coming after fraud. Period. This isn’t because it’s Maine. This isn’t because it’s a blue state. This isn’t because it’s Janet Mills. That’s just a victimhood defense.”

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Senate Minority Leader Trey Stewart, R-Presque Isle, said he’s filed a late bill to adopt a slate of Medicaid reforms and challenged Democrats to allow the measure to move forward for public hearings and votes. In addition requiring an outside review of MaineCare spending, the bill includes conservative policy proposals such as requiring those receiving Medicaid to work.

With the deadline to file new bills long passed, the bill would have to be cleared by the Legislative Council, which includes floor leaders from both parties and presiding officers.

Lawmakers would have to move quickly, since committees face a Friday deadline to vote any remaining bills to the House or Senate floor, and must approve a supplemental budget before adjourning on April 15.

“This bill is timely — this bill is necessary,” Stewart said. “Unfortunately, I don’t have high hopes that they’re gonna do the right thing.”

House Speaker Ryan Fecteau, D-Biddeford, said he would support giving the state more personnel to investigate fraud claims — something Stewart said he opposes.

“As we have said previously, whenever there are accusations of fraud, they will be investigated,” Fecteau said in a statement.

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A spokesperson for Senate Majority Leader Mattie Daughtry, D-Brunswick, declined to comment on the record.

In January, a federal inspector general report outlined $45 million in potential improper payments for autism support services. Those services are a small part of MaineCare’s broader offerings, which serve roughly 400,000 residents.

Oz has attempted to link Maine to ongoing fraud investigations in Minnesota, where the Trump administration has paused nearly $260 million in Medicaid payments. It is also targeting other Democratic-led states such as New York with similar probes.

The federal report flagged the growth of rehabilitative and support payments for children with autism from $52.2 million in 2019 to $80.6 million in 2023. But the state said the increase was an “intended and CMS-approved result” of rate-setting reforms Maine lawmakers have approved in recent years.

Stewart said he is “skeptical at best” about that explanation, saying the Mills administration has refused to answer questions from Republicans about Medicaid spending going back to last year.

“It’s a highly efficient bureaucracy,” Stewart said. “They’re very good at hide-the-ball.”

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The state’s response to CMS also explained how its Medicaid Fraud Control Unit had 22 cases referred to it from 2021-25. One case resulted in a guilty plea, 12 are open and five have been dismissed.

In December, the state suspended payments to Gateway Community Services and referred “credible allegations of fraud” to the Office of the Maine Attorney General.

The move came after a series of state audits revealed overpayments to the provider for health care services for people with disabilities.

The most recent audit revealed more than $1 million in overpayments from March 2021 to December 2021. The state had previously identified nearly $663,000 in overpayments from 2015 to 2018.

A separate MaineCare Program Integrity Unit has issued 290 notices of violation to providers in response to hundreds more complaints it has received since 2021. The unit has identified more than $37.5 million in overpayments, according to the state’s response, which noted that final amounts could change pending appeals.

Randy Billings is a government watchdog and political reporter who has been the State House bureau chief since 2021. He was named the Maine Press Association’s Journalist of the Year in 2020. He joined...

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