An Act To Allow the Reduction of a MaineCare Lien”
Maine Legislature, Session 129, LD 0194
Committee Amendment CA_A_H839 (House)

COMMITTEE AMENDMENT “      ” to H.P. 157, L.D. 194, Bill, “An Act To Allow 
the Reduction of a MaineCare Lien”
Amend the bill in section 1 in subsection 1 by striking out all of the last blocked 
paragraph (page 1, lines 30 to 44 and page 2, lines 1 to 4 in L.D.) and inserting the 
following:
'The commissioner's right to recover the cost of benefits provided constitutes a statutory 
lien on the proceeds of an award or settlement from a 3rd party if recovery for MaineCare 
costs was or could have been included in the recipient's claim for damages from the 3rd 
party to the extent of the recovery for medical expenses.  The commissioner is entitled to 
recover the cost of the benefits actually paid out when the commissioner has determined 
that collection will be cost-effective to the extent that there are proceeds available for 
such recovery after the deduction of reasonable attorney's fees and litigation costs from 
the gross award or settlement from that portion of the award or settlement attributable to 
past medical expenses paid by MaineCare after the pro rata deduction of reasonable 
attorney's fees and litigation costs.  In determining whether collection will be cost-
effective, the commissioner shall consider all factors that diminish potential recovery by 
the department, The portion of the award or settlement attributable to past medical 
expenses paid by MaineCare must be apportioned taking into consideration the full value 
of the recipient’s claim and the fraction by which it has been reduced due to factors 
including but not limited to questions of liability and comparative negligence or other 
legal defenses, exigencies of trial that reduce a settlement or award in order to resolve the 
recipient's claim and limits on the amount of applicable insurance coverage that reduce 
the claim to the amount recoverable by the recipient.  The department's statutory lien may 
not be reduced to reflect an assessment of a pro rata share of the recipient's attorney's fees 
or litigation costs. If an award is established by a court judgment, and the judgment 
allocates the portion of the award attributable to past medical expenses, that allocation is 
binding.  If the commissioner and a recipient are unable to agree on an allocation of the 
amount of recovery attributable to past medical expenses paid by MaineCare, either party 
may submit the matter to a court for a determination of the allocation.  The commissioner 
may, at the commissioner's discretion, compromise, or otherwise settle and execute a 
Date: 
(Filing No. H-          )
COMMITTEE AMENDMENT “      ” to H.P. 157, L.D. 194
COMMITTEE AMENDMENT
release of, any claim or waive any claim, in whole or in part, if the commissioner 
determines the collection will not be cost-effective or that the best possible outcome 
requires compromise, release or settlement.' 
Amend the bill by adding after section 1 the following:
'Sec. 2.  Appropriations and allocations.  The following appropriations and 
allocations are made.
HEALTH AND HUMAN SERVICES, DEPARTMENT OF 
Medical Care - Payments to Providers 0147
Initiative: Provides funding to offset the loss of recoveries in MaineCare due to the 
reduction of statutory liens for attorney's fees or litigation costs.
' 
SUMMARY
This amendment is the majority report.  The amendment provides that MaineCare's 
lien applies to the portion of the award or settlement attributable to past medical expenses 
paid by MaineCare.  If the judgment of the court allocates the portion of the award 
attributable to past medical expenses, that allocation is binding.  Otherwise, if the 
commissioner and the recipient cannot agree on the allocation, either party may submit 
the matter to a court for the court to determine the allocation.  This amendment also 
deletes the prohibition on reducing the statutory lien to reflect an assessment of a pro rata 
share of the recipient's attorney's fees or litigation costs.  The amendment adds an 
appropriations and allocations section.
FISCAL NOTE REQUIRED
(See attached)
GENERAL FUND
2019-20
2020-21
All Other
$0
$544,200
GENERAL FUND TOTAL
$0
$544,200
FEDERAL EXPENDITURES FUND
2019-20
2020-21
All Other
$0
$955,800
FEDERAL EXPENDITURES FUND TOTAL
$0
$955,800
Revised: 03/14/20
LD 194
LR 1500(03)
FY 2019-20
FY 2020-21
Projections 
FY 2021-22
Projections 
FY 2022-23
Net Cost (Savings)
General Fund
$0
$544,200
$544,650
$544,650
Appropriations/Allocations
General Fund
$0
$544,200
$544,650
$544,650
Federal Expenditures Fund
$0
$955,800
$955,350
$955,350
Revenue
Federal Expenditures Fund
$0
$955,800
$955,350
$955,350
Fiscal Detail and Notes
The bill includes General Fund appropriations to the Department of Health and Human Services of $544,200 in fiscal 
year 2020-21 due to the elimination of the prohibition on reducing the statutory lien to reflect an assessment of the 
recipient's attorney's fees or litigation costs. Federal Expenditures Fund allocations are also included for the FMAP 
match.
The amendment also changes statute to state that the MaineCare lien can only apply to the portion of the award or 
settlement that is attributable to medical expenses paid by MaineCare. This limitation is already the law based on two 
Supreme Court decisions, Arkansas v. Ahlborn, 547 U.S. 268 (2006) and Wos v. E.M.A, 568 U.S. 627 (2013), so 
there is no fiscal impact associated with this change.
Fiscal Note
An Act To Allow the Reduction of a MaineCare Lien
Fiscal Note for Bill as Amended by Committee Amendment " "
Committee: Judiciary
Fiscal Note Required: Yes
LR1500(03) - Fiscal Note - Page 1 of 1