June 7, 2006
FOR IMMEDIATE RELEASE
Press Contact

State's Mental Health Plan: "Pay More, Get Less"

LaMarche Uncovers State Plan to Privatize Mental Health Care

Augusta, Maine — Gubernatorial candidate Pat LaMarche today called the current administration's plan to privatize mental health services for the poor "discriminatory and dangerous."

"These are not Maine solutions. For Mainers this is a lose-lose proposition. For the out-of-state managed care company it's a big win. One has to wonder why the legislature and administration would even consider this a solution at all."

— Pat LaMarche

"The administration's mental health plan is going to hurt families, communities, children, the elderly, and the most vulnerable among us," said LaMarche.

The administration will issue a Request for Proposals (RFP) on July 1 to recruit a managed care organization to take over delivery of mental health services to Medicare and Medicaid recipients in Maine. Only out-of-state companies will be allowed to submit proposals because under the terms of the RFP, no current provider is allowed to bid on the contract. This privatization will divert approximately $31.2 million out of behavioral health services for the poor, including $20.8 million in federal matching funds, because the funds for these services are Medicare/Medicaid "seed money dollars."

"It was foolhardy and shortsighted when this administration privatized the profitable aspects of state government because it increased the tax burden on Mainers, but privatizing health care services needed by the poor is contemptible. This fits this administration's disappointing track record of privatization, shipping jobs and money out-of-state and a callous disregard for our most vulnerable citizens," said LaMarche.

LaMarche said the solution for Maine's behavioral health care challenges could be found by listening to and trusting Maine's mental health care providers.

"Over the last few weeks I have met with many behavioral health care providers who are certain of two things. One, that the intellectual and administrative skills exist within their community to streamline expenses while still meeting the needs of their patients. And secondly, the only way an out-of-state company is going to reduce the budget by $31.2 million will be to short-change providers and eliminate services. These are not Maine solutions. For Mainers this is a lose-lose proposition. For the out-of-state managed care company it's a big win. One has to wonder why the legislature and administration would even consider this a solution at all," said LaMarche.

 
 
CONTACT: To schedule an interview with Pat LaMarche, contact Maribeth Stuart at 207-829-9930 or 207-318-0168, or by email at maribeth@pat2006.com.