Connecticut increases Medicaid asset limits in new health program legislation

Connecticut's Senate Bill 807 is set to reshape the landscape of Medicaid eligibility, aiming to create greater equity within the state's health care programs. Introduced on March 7, 2025, the bill proposes significant changes to the asset limits for the HUSKY C health program, which serves low-income individuals and families.

The bill's most striking provision is the gradual increase of asset limits for Medicaid eligibility. By the fiscal year ending June 30, 2029, the asset limit for unmarried individuals will rise to $100,000, while married couples will see their limit set at $150,000. Most notably, starting in 2030, the bill eliminates asset limits entirely for both unmarried and married applicants, a move that advocates argue will allow more residents to access essential health services without the fear of losing their savings.

Additionally, Senate Bill 807 introduces a "spend-down" provision, allowing individuals whose income exceeds the HUSKY C limits to qualify by using their excess income on medical expenses. This change is expected to provide a lifeline for many who struggle to meet health care costs while remaining above the income threshold.

The bill has sparked discussions among lawmakers and health advocates, with supporters emphasizing its potential to reduce barriers to health care access. Critics, however, express concerns about the financial implications for the state, particularly regarding the increased costs associated with the expanded eligibility. To address these concerns, the bill mandates annual reports from the Commissioner of Social Services to monitor the number of eligible participants and any associated costs.

As Connecticut moves forward with Senate Bill 807, the implications for low-income residents could be profound, potentially allowing thousands more to secure necessary health care. The bill is set to take effect on July 1, 2025, marking a pivotal shift in the state's approach to Medicaid and health equity.