Feds scale back Maine Medicaid purge

The Obama administration will not allow Maine Gov. Paul LePage (R) to drop more than 37,000 low-income people from Medicaid, instead approving plans that will affect coverage for about 20,000 Mainers. 

President Obama's acting Medicare chief cited healthcare reform Monday in denying LePage's plan to eliminate coverage for parents whose incomes fall between the federal poverty level and 133 percent of that number.

LePage also sought to cut insurance for 19- and 20-year-olds to save a total of $23 million.

Marilyn Tavenner, the acting administrator of the Centers for Medicare and Medicaid Services, told LePage that the Affordable Care Act requires him to maintain Medicaid eligibility levels in his state.

She did approve a separate proposal to end Medicaid coverage for parents making more than 133 percent of the poverty level, or $30,657 for a family of four, and cut some benefits for elderly and disabled adults.

The reductions will begin on March 1 and save Maine about $4.5 million.

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