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Providers and physicians push for Medicaid rate increases and broader affordability reforms
Summary
Hospitals, physicians, home‑care and dental providers told the Human Services Committee that Connecticut's Medicaid payment rates have not kept pace with costs since 2007, threatening access to care; witnesses urged HB5561, SB499 and SB3 to raise rates and set predictable benchmarks tied to Medicare or other indices.
Medical, dental and home‑care providers, physician groups and nonprofit health advocates urged lawmakers to approve bills that would raise Medicaid reimbursement rates and create more predictable rate-setting to stabilize access.
Hospital and specialty providers said low Medicaid rates have caused physicians and dentists to limit participation or leave the state, concentrating care in emergency departments and driving higher long‑term costs. "Adjusting Medicaid physician reimbursement to reflect inflation and the real cost of care is a necessary step to stabilize our workforce and to protect access for patients who rely on this program the most," said Dr. Douglas Smith, president of the Connecticut chapter of the American College of Emergency Physicians.
Multiple witnesses asked the legislature to adopt objective benchmarks and indexing. Emergency providers and some specialty groups supported SB499's approach to benchmark rates toward Medicare levels; several speakers argued that the proposed 75% of Medicare target by 2029 would not fully remedy 19 years of underpayment and recommended faster alignment.
Home‑care and personal‑care providers urged passage of HB5561 to raise homemaker and companion rates and to prevent the shift of care from home to more costly institutional settings. A&B Homecare Solutions and other agencies highlighted data showing home‑based care averages far less per month than nursing‑facility care (witnesses cited figures of about $6,500/month at home vs more than $15,000/month in nursing homes).
Dental advocates asked the committee to exempt preventive services from adult Husky caps and to include dental services in any Medicaid rate‑setting benchmarks, arguing that prevention reduces costly downstream medical events. Provider groups recommended using real claim databases (for example, Fair Health) and aligning any new reporting with existing state reporting to avoid duplication.
Witnesses from patient advocacy groups also supported SB3, a broader health‑affordability bill, which contains provisions on hospital financial assistance, a state option for coverage and consumer protections; they urged careful design of enrollment and risk‑pool rules.
Committee members took testimony from a wide set of stakeholders but did not vote during the session. Advocates urged swift legislative movement to prevent further erosion of provider networks.
