LePage administration outsources part of Medicaid program

AUGUSTA, Maine (AP) - Republican Gov. Paul LePage’s plan to outsource part of the state’s Medicaid application process will cost the state more.

The Bangor Daily News reports that the LePage administration acknowledges in a publicly posted contract document that there will be a “slight increase in cost.”

The Maine Department of Health and Human Services in June will eliminate the positions of 10 state employees and enter into a $5.6 million, 25-month contract with a division of the University of Massachusetts Medical School. The agency didn’t respond to request for comment.

The newspaper’s review of budget documents says the move will cost $300,000 each year.

The school’s division will determine whether people are disabled to qualify for state-funded health coverage. The state chose the vendor without asking for bids from competitors.

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Information from: Bangor Daily News, http://www.bangordailynews.com