An Act To Clarify Liability Pertaining to the Collection of Debts of MaineCare Providers by the Department of Health and Human Services
Maine Legislature, Session 128, LD 1714
Committee: Health and Human Services
Sponsors: GATTINE
Amends: 22 MRSA §1714-A

Legislative Document
No. 1714
H.P. 1194
House of Representatives, December 22, 2017
An Act To Clarify Liability Pertaining to the Collection of Debts of 
MaineCare Providers by the Department of Health and Human 
Services
(EMERGENCY)
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 
203.
Received by the Clerk of the House on December 19, 2017.  Referred to the Committee on 
Health and Human Services pursuant to Joint Rule 308.2 and ordered printed pursuant to Joint 
Rule 401.
ROBERT B. HUNT
Clerk
Presented by Representative GATTINE of Westbrook.
Emergency preamble. Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; and
Whereas, the Department of Health and Human Services amended its rules 
governing the MaineCare program to provide that anyone with a direct or indirect 
"ownership interest" of any size in a MaineCare provider, and every officer, director or 
member of a MaineCare provider, is personally liable for the provider's debts owed to the 
department; and
Whereas, the rule amendment contravenes a foundational principle of our political 
and economic system assuring that a provider organization's members, directors and, if 
applicable, shareholders are protected from the organization's liabilities except in 
extraordinary circumstances; and
Whereas, the imposition of personal liability for a provider organization's debts on 
employees, officers, directors, members and shareholders will disruptively alter 
established insurance risks, financial arrangements and investor and creditor expectations 
and may deter qualified persons from serving in positions of trust or responsibility in 
nonprofit or for-profit organizations that deliver health care to Maine people; and
Whereas, in the judgment of the Legislature, these facts create an emergency within 
the meaning of the Constitution of Maine and require the following legislation as 
immediately necessary for the preservation of the public peace, health and safety; now, 
therefore,
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  22 MRSA §1714-A, sub-§5, as amended by PL 2003, c. 419, §5, is 
further amended to read:
5.  
Department may offset.  
The department may offset against current 
reimbursement owed to a provider or any entity related by ownership or control to that 
provider any debt it is owed by that provider after the debt becomes collectible.  The 
department shall adopt rules that implement this subsection and define the ownership or 
control relationships that are subject to an offset under this subsection, except that the 
department may not define any ownership or control relationship as subject to an offset 
unless the relationship allows the person whose relationship is the subject of the offset to 
control at least the number of votes of the provider's governing body or management that 
is needed to govern the operations of the provider.  Rules adopted pursuant to this 
subsection are routine technical rules as defined in Title 5, chapter 375, subchapter 2-A.
Sec. 2.  22 MRSA §1714-A, sub-§10 is enacted to read:
10.  No imposition of liability on other persons.  The department may not by any 
means, including without limitation any rule or any contract or agreement with a 
provider, impose liability for a debt under this section on any person other than the 
provider notified of the debt pursuant to subsection 2 or a person subject to collection by 
offset pursuant to rules adopted under subsection 5.  This subsection does not prohibit the 
department from seeking recovery of civil penalties from any person as provided in 
section 15.
Emergency clause.  In view of the emergency cited in the preamble, this 
legislation takes effect when approved.
SUMMARY
This bill clarifies requirements for the definition of an ownership or control 
relationship for purposes of determining when the Department of Health and Human 
Services may offset debts owed to the department by a provider against current 
MaineCare reimbursement due to that provider or an entity related to that provider.  It 
clarifies that the department may not offset current reimbursement owed to an entity 
related by ownership or control to the provider unless the person whose relationship is the 
subject of the offset has the voting power to govern the operation of the provider owing 
the debt.  The bill prohibits the department from imposing liability for a debt owed by a 
provider on any person except a provider notified in accordance with statute of the debt 
or a person subject to collection by offset.  The bill retains the provision in current law 
allowing the department to recover a debt by seeking a civil penalty for a false claim.