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By Dave Sherwood

BOWDOINHAM, Maine, May 23 (Reuters) – Maine’s

Democratic-controlled legislature on Thursday passed a bill that

would expand access to its Medicaid program as outlined by the

Affordable Care Act, setting up a showdown with the state’s

Republican governor, who has vowed a veto.

At issue is lawmakers’ effort to link expanded access to the

health insurance program for low-income residents to a plan to

pay the state’s share of $484 million in debt owed to Maine’s

hospitals.

Governor Paul LePage, who is frequently in conflict with

state legislators, has insisted the two issues remain separate.

“In its current form, linked to welfare expansion

(Medicaid), the governor has been crystal clear – this bill does

not have his support,” said Adrienne Bennett, a spokeswoman for

the governor. She said the administration had already begun

negotiation with the federal government regarding the mandates

in the 2011 healthcare reform law that is President Barack

Obama’s signature domestic legislative achievement.

About 15 U.S. states have said they will not participate in

the expansion of Medicaid, with 26 opting in and the balance not

yet decided, according to the Advisory Board Company, a

consulting firm that tracks the issue.

Texas lawmakers on Tuesday passed a measure, backed by

Republican Governor Rick Perry, to block the state from

participating in Medicaid expansion.

Maine legislators had proposed to use a portion of future

revenue from a renegotiated state liquor contract to pay $484

million in debt due Maine’s 39 hospitals. That proposal was

initially supported by both parties, but Republicans turned

against it last week after it was amended to increase Medicaid

access.

Democrats said the move would expand health care coverage to

an estimated 70,000 Maine citizens.

Under the Affordable Care Act, the federal government agreed

to increase Medicaid eligibility and cover 100 percent of the

costs for three years, after which coverage would be reduced to

90 percent. According to a previous analysis from Maine’s

Department of Health and Human Services, Maine taxpayers would

be on the hook for an additional $75 million per year after

federal reimbursement drops to 90 percent.

Mark Eves, speaker of the Maine House of Representatives and

a Democrat, said the bill “pays the debt and helps fix the

underlying problem that contributes to high health care costs in

the first place,” citing rising costs of charity care in

emergency rooms of Maine hospitals.

LePage made a surprise appearance at a Sunday meeting of a

legislative committee on Medicaid but lawmakers did not allow

him to speak.

“The repeated attempts by Democrats to stifle debate on

bills and to prevent me from speaking in front of the

Appropriations Committee is a disturbing pattern of censorship

that should concern all Mainers,” LePage said in a statement.

(Editing by Scott Malone and Dan Grebler)