Maine Department of Health and Human Services

But the CEO of Colorado-based Modivcare told a legislative panel on Tuesday that there will be no disruption of services in Maine as the bankruptcy plays out.

Modivcare, an out-of-state company that provides transportation for Medicaid patients in Maine, has filed for Chapter 11 bankruptcy protection.

An official with the Maine Department of Health and Human Services said this is the single largest electronic fraud incident to hit the state's Supplemental Nutrition Assistance Program.

So far this week, about 300 households have lost approximately $76,000 in benefits. That figure may rise, however. And the state officials say federal rules prohibit them from replacing stolen benefits.

MaineCare patients have complained for years that the private vendors who are paid to shuttle them to non-emergency medical appointments sometimes show up late or not at all. But DHHS said the bill is unnecessary — and potentially costly.

The city of Portland is suing the Maine Department of Health and Human Services over a shelter reimbursement rule that will cut millions of dollars in funding for the state's largest homeless shelter and others around Maine.

The late-Monday memo caused widespread confusion and concern because it was initially unclear how the freeze would impact a myriad of programs that rely on federal funding.

The state's MaineCare program is facing a nearly $120 million shortfall over the next six months, which the Mills administration says has forced it to make difficult decisions.

If confirmed by the Maine Senate, Sara Gagne-Holmes would take over the Maine Department of Health and Human Services at a time when the state's largest agency faces multiple challenges, including within child welfare programs.

The one-time, federally-funded benefit is intended to supplement the free meals kids can access over the summer in their communities.