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Home‑health providers warn Medicaid rates are unsustainable, call for immediate raises
Summary
Home‑health and hospice providers told the committee that current Medicaid reimbursement does not cover costs and is driving staff to work in neighboring states or hospitals; they asked for a phased rate increase and elimination of a 'subsequent visit' penalty.
Agency leaders from home‑health and hospice organizations told the Appropriations Subcommittee that Connecticut’s Medicaid reimbursement rates for home and community‑based services are inadequate and threaten patient access.
Several witnesses, including agency owners and home health CEOs, said Medicaid reimbursement lags far behind Medicare and neighboring states and does not cover inflationary increases in wages, fuel and supplies. They described a workforce squeeze: experienced nurses and caregivers are taking positions in hospitals or moving to nearby states where Medicaid‑funded rates are higher, leaving agencies short of staff for medically complex patients.
Requests to the committee included an immediate 10% across‑the‑board increase for home‑care visit codes, a 15% raise for behavioral‑health medication administration rates, elimination of the 50% "subsequent visit" penalty rate, and implementation of an add‑on for high‑risk cases. Speakers also asked that increases be phased for fiscal years 2026–2029 to provide stability rather than one‑time boosts.
Providers emphasized that home care is cost‑effective: stable home services reduce hospitalizations and institutional placements. Several families and clinicians described clients whose lives improved once continuous skilled nursing care or in‑home supports were available; they warned that cuts or stagnant rates will return people to expensive inpatient settings.
Ending: Witnesses asked the committee to adopt rate increases tied to inflation and to institute a scheduled review mechanism so home‑health agencies can sustainably support caregivers and medically complex patients.
