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Amid federal aid uncertainty, CT Medicaid increase proposal is introduced


Democratic leaders in Connecticut have announced a $250 million, three-year plan to increase Medicaid reimbursement rates for physicians providing services to low-income residents. These would be the first increases in nearly two decades. Legislators are moving forward with state issues despite federal financial uncertainty.

Physicians and legislators have long advocated for higher rates, as current rates are too low for providers to afford treating Medicaid patients, thus limiting access to care. The proposal aims to increase rates to at least 75% to 80% of current Medicare rates over three years. The plan also includes establish a process for rate updates every two to three years.

However, Connecticut Governor Ned Lamont has been hesitant to implement broad increases until further studies on Medicaid reimbursement rates are complete. The proposal does not include rate adjustments for major hospital systems, subject to a 2019 settlement agreement. Negotiations between the administration and state employee unions and other budgetary demands present obstacles in securing the additional funds needed for the Medicaid expansion. Federal cuts to Medicaid could further complicate the situation.

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