Maine's Department of Health and Human Services and the Maine Hospital Association have reached an agreement to reform reimbursement rates for MaineCare, which provides insurance for 400,000 low-income individuals.
They say that hospitals would receive see the same or higher rates under the proposal, by being more aligned with Medicare rates.
If approved, the groups say it would devote an additional $90 million in federal and state funding to hospitals.
The new reimbursements will be included in the upcoming supplemental budget proposal.