Amid fraud concerns, conservative group pushes for new MaineCare oversight rules

 The founder of Lead Maine, Rep. Laurel Libby, R-Auburn, speaks at a news conference marking the delivery of more than 3,000 certified voter signatures to the Maine Department of Health and Human Services across two petitions to initiate rulemaking on MaineCare oversight on Tuesday at the Maine State House Welcome Center in Augusta. (Joe Phelan/Staff Photographer) AUGUSTA — A conservative group is making a push for stricter oversight rules over MaineCare spending amid concerns about fraud in Maine’s largest social services program. Lead Maine collected more than 3,500 signatures from registered voters in support of two petitions that would force the Maine Department of Health and Human Services to examine new rules, Rep. Laurel Libby, R-Auburn, the group’s executive director said Tuesday. The group is proposing specific rules that would mandate in-person inspections of MaineCare providers and require payment suspensions in the event of improper payments. Under state law, their effort would force the department to start a rulemaking process within 60 days. “Greater accountability will only strengthen this program to ensure the funds are available for vulnerable Mainers who need it,” Libby said at a State House news conference. The effort comes amid concerns about fraud in MaineCare, the state’s Medicaid program. DHHS [suspended MaineCare payments last year](https://www.pressherald.com/2026/05/20/maine-upholds-decision-to-suspend-medicaid-payments-to-service-provider/) to a Portland-based healthcare services provider after it was accused of falsifying billing records. The state has referred the case to the Office of the Maine Attorney General for investigation. A spokesperson for the AG’s office said Tuesday that no update was available on the status of the case. Advertisement Related [How common is MaineCare fraud?](https://www.pressherald.com/2026/01/18/how-common-is-mainecare-fraud/) Separately, [a federal audit released in January](https://www.pressherald.com/2026/01/23/maine-made-45-6-million-in-improper-payments-for-autism-services-federal-audit-finds/) found that Maine made close to $46 million in improper payments for autism services in 2023. Republicans in particular have pushed for greater accountability over [MaineCare, one of the state’s largest budget items](https://www.pressherald.com/2025/09/14/how-mainecare-has-grown-and-become-a-budget-buster-in-the-process/) with a biennial cost of about $3 billion. Democratic Gov. Janet Mills’ administration has responded to the concerns and, in the case of the federal audit, said that authorities did not find evidence of fraud but rather “potential documentation and compliance issues.” Similar audits in other states also found millions of dollars in improper payments. Alisa Morton, a spokesperson for DHHS, said Tuesday that the department is “committed to protecting the integrity of the MaineCare program, responsibly stewarding state and federal resources, and preserving access to care for the Maine people who rely on MaineCare.” Morton said the department has received the petitions and is reviewing them. She did not say specifically what next steps will be taken, but confirmed that state law requires DHHS to initiate rulemaking proceedings within 60 days if a petition is properly submitted with signatures from at least 150 Maine voters. Advertisement Morton noted that the state has “taken significant actions in recent years to increase oversight and scrutiny of Medicaid providers,” including implementing the first licensing standards for home and community support services and personal care agencies. “With these standards in place, the Maine Department of Health and Human Services has the authority to exercise stronger oversight and enforcement powers over these providers,” she said. Libby, who is wrapping up her third term in the Legislature, argued, however, that her group is seeking to utilize the rulemaking process because lawmakers have not done enough to reform MaineCare and ensure adequate oversight. The petitions submitted Tuesday call for two specific rules to tighten MaineCare spending. The first would close what Libby described as a loophole that lets state auditors count a phone call or paperwork review as an on-site inspection of a MaineCare provider. Related [How MaineCare has grown — and become a budget buster in the process](https://www.pressherald.com/2025/09/14/how-mainecare-has-grown-and-become-a-budget-buster-in-the-process/) The proposed rule would require an in-person visit to a provider’s location and makes a provider’s refusal to permit an in-person inspection grounds for sanction. The second proposal requires DHHS to suspend new payments to any provider to whom they have issued notice for an improper payment of $1,000 or more, and hold the payments in a segregated, interest-bearing escrow account. The provider would have the opportunity to make their case at an administrative hearing, and if they are cleared, would recover the funds and interest. Neither rule would change the eligibility or benefits available to MaineCare recipients, Libby said. “When the folks who are in power refuse to do what the people want, then it’s up to the people to get it done,” she said. In February, lawmakers on the Government Oversight Committee [approved a review of the DHHS office](https://www.pressherald.com/2026/02/27/lawmakers-approve-review-of-dhhs-mainecare-fraud-unit/) that oversees the integrity of the MaineCare program in response to fraud concerns, though a state official noted at the time that it could take until next year before the assessment is done. Copy the Story Link Tagged: [department of health and human services](https://www.pressherald.com/tag/department-of-health-and-human-services/), [Janet Mills](https://www.pressherald.com/tag/janet-mills/), [Laurel Libby](https://www.pressherald.com/tag/laurel-libby/), [mainecare](https://www.pressherald.com/tag/mainecare/) [](https://www.pressherald.com/author/rachel-ohm) [Rachel OhmStaff Writer](https://www.pressherald.com/author/rachel-ohm) Rachel covers state government and politics for the Portland Press Herald. It’s her third beat at the paper after stints covering City Hall and education. Prior to her arrival at the Press Herald in. [More by Rachel Ohm](https://www.pressherald.com/author/rachel-ohm)