An Act to Offset Federal Cuts to Health Insurance for Certain
Maine Legislature, Session 132, LD 2208
Committee: Health and Human Services
Sponsors: FECTEAU, DAUGHTRY
Amends: 22 MRSA §1730-B, 22 MRSA §3198, 22 MRSA §3199

Legislative Document
No. 2208
H.P. 1487
House of Representatives, February 10, 2026
An Act to Offset Federal Cuts to Health Insurance for Certain 
Maine Families and Seniors
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 
203.
Reference to the Committee on Health and Human Services suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Speaker FECTEAU of Biddeford.
Cosponsored by President DAUGHTRY of Cumberland and
Representatives: CLUCHEY of Bowdoinham, DODGE of Belfast, JULIA of Waterville, 
MATHIESON of Kittery, RAY of Lincolnville, Senators: GROHOSKI of Hancock, RENY of 
Lincoln, TIPPING of Penobscot.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  22 MRSA §1730-B is enacted to read:
§1730-B.  Rural Hospital Stabilization Program
1.  Program established.  The Rural Hospital Stabilization Program, referred to in this 
section as "the program," is established within the department to provide grants to defray 
operating costs for health care providers and health care facilities in rural areas, including 
start-up costs, incurred in providing inpatient, outpatient, primary, specialty or behavioral 
health care services to residents of the State and to stabilize the provision of existing health 
care services when those services are at risk of reduction or elimination.  For the purposes 
of this section, "rural area" has the same meaning as in section 5304, subsection 18. 
2.  Rural Hospital Stabilization Fund.  The Rural Hospital Stabilization Fund, 
referred to in this section as "the fund," is established as a dedicated, nonlapsing fund 
administered by the department for the purposes of funding the program.  The department 
may receive money from any gift, grant, contribution, legislative appropriation, allocation 
or transfer or bond proceeds. The money in the fund may be used only for the purposes of 
awarding grants under the program and paying program administration costs. 
3.  Program eligibility.  The department shall award grants from the fund, which are 
subject to the following conditions and limitations. 
A.  The health care provider or health care facility must meet state licensing 
requirements to provide health care services and must be an enrolled Medicaid provider 
that actively serves Medicaid recipients in a rural area. 
B.  Grants must be for at least one year and for no more than the first 5 years of 
operation as a newly constructed health care facility in a rural area or the operation of 
a new or expanded health care service in a rural area. 
C.  Grants must be limited to covering operating costs for which revenue is not 
sufficient. 
D.  The health care provider or health care facility must provide evidence to the 
department that the receipt of a grant under this section would help the health care 
provider or health care facility reopen services that have closed due to cost constraints 
or would help keep existing services open. 
E.  The health care provider or health care facility must provide adequate cost data, as 
defined by rule by the department, based on financial and statistical records that can be 
verified by qualified auditors.  The data must be based on an approved method of cost 
finding and the accrual basis of accounting and be confirmed as having been delivered 
through review of claims. 
F.  Grant award amounts must be reconciled by the department to audited operating 
costs after the close of the grant period. 
G.  In the case of a health care provider, the provider must commit to: 
(1) A period of operation equivalent to the number of years grants are awarded; 
and 
(2) Actively serve Medicaid recipients in a rural area throughout the duration of 
the grant period. 
H.  In prioritizing grant awards, the department must consider the health needs of the 
State and the locality in which the health care facility is located and long-term 
sustainability of the new or expanded health care service. 
I.  Grants from the fund may not be used for operations outside of the State. 
4.  Rulemaking.  The department may adopt rules to implement this section.  Rules 
adopted pursuant to this subsection are routine technical rules as defined in Title 5, chapter 
375, subchapter 2-A. 
Sec. 2.  22 MRSA §3198 is enacted to read:
§3198.  Health Care Premium Stabilization Fund
1.  Fund established.  The Health Care Premium Stabilization Fund, referred to in this 
section as "the fund," is established as a dedicated, nonlapsing fund administered by the 
department to maintain coverage for residents of the State through the Maine Health 
Insurance Marketplace, established in chapter 1479, Medicaid or other federal assistance 
programs if the federal Patient Protection and Affordable Care Act, Public Law 111-148 
and 42 Code of Federal Regulations, Part 455 are repealed or are administered in a way 
that reduces access to comprehensive health coverage for residents of the State. 
2.  Sources of fund.  The fund consists of amounts appropriated or allocated by the 
State.  The department may receive money from any gift, grant, contribution, legislative 
appropriation, allocation or transfer or bond proceeds. 
3.  Uses of fund.  The department shall use the fund to establish a state subsidy to offset 
the financial impact of the expiration of the enhanced premium tax credits under the 
American Rescue Plan Act of 2021, Public Law 117-2.  The subsidy must be used to 
increase the amount of assistance available to those previously eligible for subsidies under 
the federal Affordable Care Act, Public Law 111-148 and to expand assistance to those 
with an income at or below 400% of the federal poverty level if the recipient's premium 
cost of a silver category health insurance plan under the federal Affordable Care Act would, 
prior to the receipt of a subsidy under this section, exceed 8.5% of the recipient's household 
income. 
4.  Rulemaking.  The department may adopt rules to implement this section.  Rules 
adopted pursuant to this subsection are routine technical rules as defined in Title 5, chapter 
375, subchapter 2-A. 
Sec. 3.  22 MRSA §3199 is enacted to read:
§3199.  MaineCare Federal Response Fund
1.  Fund established.  The MaineCare Federal Response Fund, referred to in this 
section as "the fund," is established as a dedicated, nonlapsing fund administered by the 
department to supplement funding for the MaineCare program in the case of funding 
revenue shortfalls due to reductions in federal contributions that support MaineCare 
programs.  The department may use funds in the fund to enhance program outreach and to 
address changes to federal requirements related to program eligibility and renewals.
2.  Rulemaking.  The department may adopt rules to implement this section.  Rules 
adopted pursuant to this subsection are routine technical rules as defined in Title 5, chapter 
375, subchapter 2-A.
Sec. 4.  Appropriations and allocations.  The following appropriations and 
allocations are made.
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF
Miscellaneous Acts and Resolves - Finance 0306
Initiative: Appropriates one-time funding to be distributed to the Maine Guaranteed Access 
Reinsurance Association to increase the reinsurance program for the 2027 coverage year.
GENERAL FUND
2025-26
2026-27
All Other
$0
$80,000,000
__________
__________
GENERAL FUND TOTAL
$0
$80,000,000
ADMINISTRATIVE AND FINANCIAL 
SERVICES, DEPARTMENT OF
DEPARTMENT TOTALS
2025-26
2026-27
GENERAL FUND
$0
$80,000,000
__________
__________
DEPARTMENT TOTAL - ALL FUNDS
$0
$80,000,000
HEALTH AND HUMAN SERVICES, DEPARTMENT OF
Health Care Premium Stabilization Fund N566
Initiative: Provides one-time funding for the Health Care Premium Stabilization Fund.
GENERAL FUND
2025-26
2026-27
All Other
$0
$17,300,000
__________
__________
GENERAL FUND TOTAL
$0
$17,300,000
MaineCare Federal Response Fund N568
Initiative: Provides one-time funding to offset federal cuts to health insurance for certain 
families and seniors, with $5,000,000 set aside that may be used for technology 
improvements at the Office for Family Independence and Office of MaineCare Services to 
implement federal policy changes. The Office for Family Independence may also use these 
funds to enhance outreach to help with the rollout of new federal requirements related to 
eligibility and renewals.
GENERAL FUND
2025-26
2026-27
All Other
$0
$105,000,000
__________
__________
GENERAL FUND TOTAL
$0
$105,000,000
Rural Hospital Stabilization Fund N567
Initiative: Provides one-time funding for grants to rural health care services.
GENERAL FUND
2025-26
2026-27
All Other
$0
$50,000,000
__________
__________
GENERAL FUND TOTAL
$0
$50,000,000
HEALTH AND HUMAN SERVICES, 
DEPARTMENT OF
DEPARTMENT TOTALS
2025-26
2026-27
GENERAL FUND
$0
$172,300,000
__________
__________
DEPARTMENT TOTAL - ALL FUNDS
$0
$172,300,000
SECTION TOTALS
2025-26
2026-27
GENERAL FUND
$0
$252,300,000
__________
__________
SECTION TOTAL - ALL FUNDS
$0
$252,300,000
SUMMARY
This bill does the following. 
1. It establishes the Rural Hospital Stabilization Program to provide grants to defray 
operating costs for health care providers and health care facilities in rural areas, including 
start-up costs, incurred in providing inpatient, outpatient, primary, specialty or behavioral 
health care services to residents of the State and to stabilize the provision of existing health 
care services when those services are at risk of reduction or elimination. 
2. It establishes the Health Care Premium Stabilization Fund to maintain coverage for 
residents of the State through the Maine Health Insurance Marketplace, Medicaid or other 
federal assistance programs if the federal Patient Protection and Affordable Care Act is 
repealed or is administered in a way that reduces access to comprehensive health coverage 
for residents in the State. 
3. It establishes the MaineCare Federal Response Fund to supplement funding for the 
MaineCare program in the event of funding revenue shortfalls due to reductions in federal 
contributions that support MaineCare programs.