(The Center Square) — Maine Gov. Janet Mills is pushing back on the Trump administration’s threats of a federal takeover if it doesn’t turn over details of state Medicaid payments for an investigation of potential fraud in the program.
“Let’s be clear about what this is,” Mills said in a statement. “Maine is facing a political attack from a president who uses allegations of fraud as a pretense to send ICE and other weaponized federal agents into states led by Democrats with devastating consequences.”
Her comments come in response to demands from U.S. Centers for Medicare and Medicaid Director Mehmet Oz for Mills and state Department of Health and Human Services to turn over detailed information about eligibility rules and oversight of MaineCare, the state’s Medicaid program.
Oz cited a recent federal watchdog report, which faulted state officials for making $45.5 million in “improper” Medicaid payments for services to autistic children.
“These findings, combined with national trends and prior OIG and CMS reviews, underscore the need for immediate corrective action and enhanced transparency,” Oz wrote.
In a social media post, Oz compared Mills to Minnesota Gov. Tim Walz, alluding to a multi-million-dollar scandal involving Medicaid fraud by immigrant-run providers in that state that was used, in part, as a pretext for large-scale immigration operations.
“Another governor left the cash register unattended. CMS is going to work with Maine to put their house in order,” Oz wrote. “And if we’re not satisfied with their progress, we reserve the right to cut off payments entirely.”
Mills, who is running for U.S. Senate, fired back at the threats of federal intervention, saying they are “part of President Trump’s malicious playbook of using his administration’s power to punish anyone who dares to stand up to him or who disagrees with him.”
A January report by the U.S. Department of Health and Human Services Office of Inspector General found nearly 100 Medicaid payments for autistic rehabilitative and community support services did not fully comply with federal and state requirements. The federal watchdog directed the state to repay at least $28.7 million for the federal share of the payments.
In response to the audit, the Maine Department of Health and Human Services noted the financial review was routine and “not triggered by any specific allegation” against the state. The agency said the IG’s report “does not include findings or allegations of fraud” but identified “potential documentation and compliance issues, which the state is now reviewing.”
In her statement, Mills said the state has “implemented new and unprecedented licensing requirements for Medicaid providers, prioritized audits, and worked directly with state and federal authorities to hold accountable individuals who attempt to defraud our state.”
But the IG’s report comes amid increased scrutiny of Maine’s Medicaid spending following recent claims by a whistleblower that the Lewiston-based Gateway Community Services, whose CEO is from Somalia — overbilled MaineCare — and submitted false claims for behavioral health services it didn’t provide
Medicaid is jointly funded by states and the federal government. In Maine, the federal government picks up most of MaineCare’s $5.4 billion in yearly spending, with the state contributing about $1.5 billion, according to federal data.
