Maine hospitals and health reform advocates are sparring over proposed legislation that would cap hospital prices. LD 2196, sponsored by State Rep. Drew Gattine, D-Westbrook, would cap hospital prices charged to private insurance companies at 200% of Medicare reimbursement rates, with the goal of helping control premiums private insurers charge to customers. Gattine said he believes “rising hospital costs are contributing to the affordability crisis we are having.”
However, hospital executives say Maine’s health care systems are financially “fragile” compared to those in most states and warn that the measure, if passed, would result in closures and cuts to services. Dr. Andy Mueller, CEO of MaineHealth, the largest health care system in Maine, said its revenue would decline by about $650 million per year if the bill passes. “The only way we would survive without becoming insolvent is by letting go of a third of our workforce—8,000 of our 24,000 workforce would have to be cut,” Mueller said.
Cost Variation and State Examples
The prices hospitals charge can vary depending on which hospital a patient goes to. A knee replacement at Northern Light Mercy Hospital in Portland cost $50,319, while the same surgery at MaineHealth Maine Medical Center in Portland cost $66,694. Limiting outlier charges—when the cost of a procedure at one location is much more expensive than a similar procedure at another—is a goal of the legislation. Similar laws in Oregon, Indiana, and Rhode Island have been passed, with Indiana’s law being most similar to what Maine is proposing. In Indiana, hospitals don’t have to comply until 2029.
A presentation by the Office of Affordable Health Care to lawmakers noted that recent surveys showed one-third of Maine residents have skipped or delayed going to the doctor because they were worried about health care costs. A public hearing on the bill has not yet been set. Gov. Janet Mills is reviewing the bill and has not yet taken a position on it.
This article is an AI-assisted summary. All facts and figures are drawn from the original report: https://www.centralmaine.com/2026/02/24/maine-hospitals-health-reform-advocates-spar-over-proposed-bill-to-regulate-prices/