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Providers across sectors ask Appropriations to shore up Medicaid rates and budget supports
Summary
Clinics, hospitals, home‑health and behavioral‑health providers warned the committee that current Medicaid reimbursement levels and proposed budget changes threaten access to care and urged sustained or increased funding across multiple programs.
Hospital leaders, physicians, community health centers, home‑health agencies, behavioral‑health providers and EMS officials testified that Medicaid payments remain well below the cost of care and that the governor's proposed budget fails to address those gaps sufficiently.
Representatives of Connecticut Hospital Association and multiple hospitals described a structural shortfall in Medicaid payments and urged predictable rate adjustments. “Medicaid pays about 62¢ on what it actually costs to provide that care,” said Michael Bellett, chief financial officer of Stamford Health. Hospital representatives opposed changes in the governor's proposal to increase the hospital tax in a way they said would not remedy the underlying Medicaid shortfall.
Primary care and community‑health center leaders said Medicaid rates are 20–25% lower than peer states and that centers lost money on each Medicaid visit. Katie Curran of Connecticut Institute for Communities said her center lost revenue and had to reduce staff and benefits to stay solvent. Clinicians and the Connecticut State Medical Society asked for a larger, multi‑year investment in physician Medicaid rates; the society said the governor’s proposed $60 million over three years was insufficient and urged at least $200 million.
Home‑health agencies and providers of behavioral and outpatient mental‑health services told the committee low rates have caused staffing shortages and program cuts. Day Kimball Home Care described a drop in nursing staff and home care aides since 2015 and asked for scheduled increases and add‑on payments for high‑risk cases. Child and Family Agency and other behavioral‑health nonprofits asked for a collective $264 million increase for nonprofits including a 6% Medicaid rate increase in FY26 and an 8% increase in FY27 to stem turnover and waiting lists.
EMS leaders cautioned against proposed rollback of the 2024 Medicaid rate increase for ambulance transports. Patrick Ciardullo, CEO of New Britain EMS, said average Medicaid reimbursement per transport was $313 and covered only 63% of actual transport costs. EMS providers and the Connecticut EMS association asked the committee to preserve recent increases and reject proposed cuts that would reduce ambulance readiness and staffing.
Orthopedic surgeons and ambulatory surgery representatives emphasized low Medicaid reimbursement for procedures and hardware, which they said pushes patients to more expensive hospital settings when implants are not covered. Dental and audiology providers likewise urged higher rates to preserve services; Community Health & Wellness Center said it had suspended dental services because of $350,000 in annual losses for restorative care.
Witnesses repeatedly linked low reimbursement to staff turnover, program closures, longer wait lists and greater use of emergency services. They urged the committee to prioritize Medicaid rate increases and to protect supplemental payments so safety‑net providers can maintain services while the legislature considers longer‑term Medicaid redesign.
