Nonprofit behavioral‑health providers warn of staffing collapse without higher Medicaid rates and added grant funding
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Summary
Child‑ and family‑serving nonprofits, provider networks and clinicians told the committee that chronic underfunding and low Medicaid reimbursement rates are creating staff shortages, long wait lists and program closures; they asked for a $264 million boost to nonprofit services.
Leaders from community behavioral‑health providers, early‑childhood programs and affiliated nonprofits urged a substantial increase in state funding during the Appropriations Subcommittee hearing, warning the current reimbursement structure puts programs, staff and client access at risk.
Several agencies, including Child FIRST affiliates, Community Health Resources, Clifford Beers and regional behavioral‑health providers described rising client acuity, longer wait lists and vacancies they attribute to Medicaid rates that have not kept pace with inflation. Speakers asked for a $264 million increase for nonprofit human services in fiscal year 2026, with a proposal that included an annualized COLA for state grants and scheduled increases in Medicaid rates (a 6% increase in FY 2026 and an 8% request for FY 2027 in testimony from several providers).
Child FIRST supervisors and clinicians described long waiting lists for home‑based early intervention, noting the program's evidence base and randomized controlled trial findings showing reduced child welfare involvement and improved parental mental health when services are timely. "We have 75 families on a wait list in Region 4 alone," said an affiliate site supervisor. Several Child FIRST speakers asked that the existing two‑tier professional/paraprofessional payment structure be preserved and that the general administrative (gap) payment remain statutory because the gap covers critical unreimbursed administrative work.
Behavioral‑health clinicians described losing staff to hospitals, private practice and school districts because those employers pay more; several witnesses asked the legislature to move Medicaid rates toward the Medicare benchmark or at least to 75–80% of Medicare over multiple years. The Yale Child Study Center and other pediatric advocates said low rates disproportionately affect children's access to specialty behavioral health services.
Ending: Providers requested immediate, recurring funding in the budget to stabilize services and preserve access; committee members did not take a formal vote during public testimony.