Maine Republicans Demand Accountability as Medicaid Fraud Allegations Mount Against Gateway Community Services

Maine Republican leaders are calling for expanded investigations and accountability following allegations of widespread Medicaid fraud involving Gateway Community Services. Maine House assistant minority leader Katrina Smith told a recent interview that audits and whistleblower testimony suggest Gateway Community Services improperly billed MaineCare, the state’s Medicaid program, for services that were never provided.

MaineCare serves more than 450,000 people in a state with a population of 1.4 million, Smith said, creating what she described as vulnerabilities for abuse. “What we’ve only begun to see through some audits that have been released is that Gateway Community Services itself has been overbilling,” Smith stated.

She cited a whistleblower who alleged the organization billed for electronic payments and services that never occurred. Smith said the alleged misconduct could extend beyond MaineCare and called the situation “the tip of the iceberg,” raising concerns about how much taxpayer money may have been improperly spent.

The issue has intensified scrutiny on Democratic Rep. Deqa Dhalac, who serves on Gateway Community Services’ board. Dhalac released a statement denying wrongdoing, saying accusations that she participated in illegal activity are “unequivocally false” and “reckless and harmful.” She said she supports investigations to hold accountable anyone who misused public funds.

Smith also said she supports House Minority Leader Billy Bob Faulkingham’s call to remove Dhalac from the Legislature’s Appropriations Committee while investigations continue. “She should not oversee the taxpayer funds of this state at this time,” Smith added, noting Republicans have previously been removed from committees for far less serious matters.

During the interview, Smith echoed comments made by Republican state Sen. Matt Harrington at a recent press conference, where he compared Maine’s allegations to a large welfare fraud case in Minnesota. Harrington accused Democratic leadership in Maine of remaining silent and said action only followed sustained media scrutiny.

Smith criticized Democratic Gov. Janet Mills, saying the alleged lack of oversight ultimately falls on the state’s chief executive. “When we have fraud and we have people getting no-bid contracts worth hundreds of thousands of dollars, if not millions, without oversight, that falls at her feet,” Smith said. She asserted Mills should publicly address the allegations and be held accountable.

Smith also questioned actions by other state officials, noting that the attorney general’s office recently awarded $400,000 in opioid settlement funds to Gateway Community Services and that the secretary of state has appeared at events involving organizations tied to the case. Smith credited independent journalists for bringing attention to the allegations. “We need the help of the federal government and national reporters to really help us dig in,” she said, citing economic pressures facing Maine taxpayers.

Smith confirmed during the interview that resignation should be considered depending on the outcome of investigations.