$750M MaineCare transport contract will go to Colorado company, court rules
A Modivcare van in Portland. (Stephanie McFeeters/Maine Monitor)
A $750 million MaineCare transport contract will stay with a Colorado company already serving most of the state, the Maine Supreme Judicial Court ruled Tuesday.
The decision ends a yearslong dispute over the award process.
In 2023, the Maine Department of Health and Human Services awarded Colorado-based Modivcare a 10-year contract to provide nonemergency transportation services for MaineCare patients. The company already handles transportation for much of Maine, and after a competitive bid process, it was slated to take over services for the entire state.
“Modivcare earned this contract through a rigorous evaluation process, and we appreciate the State’s continued trust in our service delivery,” said Daniel Silvers, chairman of Modivcare’s board of managers. “Modivcare looks forward to partnering with other local providers as we expand into these regions.”
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But the transport providers already covering Kennebec, Somerset, Piscataquis and Penobscot counties challenged the decision. The nonprofit Penquis Community Action Agency of Bangor filed a lawsuit against the Maine Department of Health and Human Services, while Waldo Community Action Partners joined the lawsuit as an interested party.
Penquis argued the bidding process was unfair to the local nonprofits.
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States officials also had second thoughts about the award. Modivcare emerged from bankruptcy on Dec. 29, 2025, and while leaders said services were not disrupted as the company regained its financial footing, some lawmakers expressed concerns about entrusting the entire MaineCare program to an out-of-state company.
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As the court deliberated the issue, Penquis’ contract, which leaders have said makes up a significant portion of its funding, was extended.
That contract will end Dec. 31, 2026, the court ruled this week. The judges unanimously found there was no ground to invalidate the award to Modivcare decided by DHHS.
“Simply put, there was scant evidence in the administrative record to support Penquis CAP’s claim of disparate treatment,” the opinion said.
A spokesperson for Penquis said the nonprofit will continue scheduling rides, coordinating with transportation providers and assisting with eligible mileage reimbursement until Modivcare takes over.
“Today’s decision brings clarity, and we will abide by the decision,” said Kara Hay, president and CEO of Penquis. “Our priority is continuity for MaineCare members and for the transportation partners who make these rides possible every day.”
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Hannah Kaufman covers health and access to care in central and western Maine. She is on the first health reporting team at the Maine Trust for Local News, looking at state and federal changes through the. More by Hannah Kaufman
