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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.
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Modivcare, an out-of-state company that provides transportation for Medicaid patients in Maine, has filed for Chapter 11 bankruptcy protection.
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The president's "One Big Beautiful Bill" contains significant cuts to Medicaid, which state officials and hospital representatives say could further strain rural hospitals already struggling to stay afloat.
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Maine is required by law to have balanced budget and the Trump domestic policy bill is expected to result in billions in lost federal aid for Medicaid and food assistance. It's unclear when state lawmakers might have to patch such a hole because Republicans delayed implementation of some cuts until after the 2026 midterm elections.
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The Democratic governor laid out her concerns in a letter to the state's congressional delegation this week as the Senate continues work on the bill, which contains key aspects of President Trump's domestic agenda.
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Mainspring, a new social service collective in Kittery, has a growing clientele. With federal cuts looming, advocates are sounding the alarm.
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More than 38,000 adult Mainers with disabilities are enrolled in MaineCare, the state version of Medicaid. Advocates say the future of programs that help people with disabilities live in the community is at risk if Congress slashes hundreds of billions of dollars from Medicaid as proposed under the pending budget bill.
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House Speaker Ryan Fecteau joined the call to preserve cost-of-living increases for CNAs, home health aides and other workers to avoid worsening the existing staffing shortage.
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Mills said it would make steep cuts to Medicaid in order to help fund tax breaks for the wealthy.
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Senior care advocates in Maine urge lawmakers to address low MaineCare reimbursement rates, claiming they are driving facility closures, staffing shortages, and reduced care access.