AUGUSTA — Republicans in the state Legislature warned Tuesday that they believe recent allegations of fraud leveled against a Portland social services agency may be just the beginning of problems with MaineCare billing practices.

Last week, the Maine Department of Health and Human Services suspended all MaineCare payments to Gateway Community Services LLC after determining “there exists a credible allegation of fraud.”

On Tuesday, legislative Republicans told reporters at the State House that more than 5,000 different organizations are billing MaineCare and the state has only 22 employees to examine fraud claims.

“I believe that what we’ve uncovered so far is only scratching the surface of fraud here in Maine,” said Assistant Senate Minority Leader Matt Harrington, R-Sanford.

Republicans said for months, they’ve been asking for more information and accountability at DHHS, especially during budget negotiations.

When it comes to Gateway, a letter sent from DHHS to the company describes the allegations as billing for services not rendered and billing for non-covered services.

That same day, DHHS alerted the company that it believes the state has overpaid more than $1 million for claims filed between March 1, 2021 to Dec. 31, 2022.

An attorney for Gateway told Spectrum News that the company is cooperating with DHHS and has had to lay off some employees because of the state’s decision to suspend payments.

In a Dec. 12 press release, the company said the allegations are coming to light now because a “disgruntled employee” who was laid off by the company in April complained to The Maine Wire and other right-wing media outlets.

The company said allegations of fraud “are false” and that Gateway “maintains strict billing, documentation, and compliance protocols.” Gateway provides mental and behavioral health services for those with disabilities and was founded by Abdullahi Ali, an immigrant from Somalia.

“These reckless narratives have real impacts on the thousands of Mainers, a majority of whom are not immigrants, that rely on Gateway for services, as well as the many employees, again many of whom are not immigrants, that work to assist those Mainers,” Pawel Binczyk, an attorney at Fisher & Phillips, wrote in the statement.

At the Tuesday press conference, Republicans called on Democrats to launch a thorough investigation of all potential MaineCare fraud to ensure that taxpayer funds are being spent wisely.

“It’s time for a full-throated, hold-back-nothing investigation into these organizations,” said Assistant House Minority Leader Katrina Smith, R-Palermo. “The people of Maine are demanding accountability for the money that they send to Augusta every single day.” 

Senate President Mattie Daughtry, D-Brunswick, and House Speaker Ryan Fecteau, D-Biddeford, released a statement saying an investigation is ongoing and that they too value accountability and integrity in any use of public funds. But they warned of making assumptions about any particular group or organization.

"We are mindful of the broader national climate and the impact of dangerous rhetoric about immigrant and Muslim communities — including Somali Americans," they wrote. "That context underscores why investigtions must be grounded in evidence, clear standards, and due process, not politics or assumptions."

A DHHS spokeswoman said in a statement that the recent audit of Gateway has been referred to the Office of the Attorney General for investigation.

“The Department will continue to hold providers to the highest standards and ensure accountability in the use of public funds,” Lindsay Hammes, press secretary at DHHS, said in the statement.