Facing the prospect of massive federal cuts to Medicaid and other programs, state Democrats gathered at the Capitol on Friday to address the potential effects and discuss ways to respond.
Sen. Matt Lesser, D-Middletown, co-chair of the Human Services Committee, said those type of cuts to Medicaid would have a devastating impact on cost and coverage.
“Over the last three governors, Connecticut has made enormous progress in reducing our uninsured rate,” Lesser said at the press conference. “If Donald Trump, Elon Musk and their allies in Washington are able to make those $880 billion in cuts to Medicaid, that will hugely impact us in Connecticut.”
On Tuesday night, congressional Republicans passed a resolution that calls for at least $1.5 trillion in spending cuts and directs the House Energy and Commerce Committee to come up with $880 billion in savings. The resolution doesn’t specify where those cuts need to come from, but based on the spending that committee handles, Medicaid would likely need to be part of the equation.
Lesser highlighted a recent report from the Urban Institute showing that, if the proposed federal funding cuts go through, Connecticut’s Medicaid spending would have to increase by 24%, or $1.5 billion, to make up for them.
Medicaid, known as HUSKY in Connecticut, provides health coverage to people with incomes below certain thresholds. Roughly a quarter of Connecticut residents currently receive coverage through the Medicaid program.
House Republicans were reportedly considering several proposals, including imposing a per capita cap on federal Medicaid spending, reducing the amount of funding the federal government provides for each enrollee and imposing Medicaid work requirements.
In response to recent outcry, Speaker Mike Johnson said the government would not pursue per capita caps or reductions in federal matching, two proposals that would have resulted in the steepest cuts. Lesser acknowledged that the state may have to pivot if the federal changes are significant.
“We may very well, depending on the timing, be back in special session if things change and we need to adjust our budget,” he said.
Republican leadership issued a statement that Democrats are contributing to the Medicaid crisis.
“There’s irony in Democrats holding a press conference to decry a Medicaid crisis in Connecticut — one they’re contributing to,” said Sen. Minority Leader Stephen Harding and House Minority Leader Vincent Candelora in a statement. “Their push to expand free health care for illegal immigrants is diverting funds from essential services.
“Time and again, they reject efforts to curb waste, fraud, and abuse, refusing even basic, common-sense reforms — like helping able-bodied individuals return to work.”
State Medicaid rates
Amidst the federal uncertainty, a years-long saga over Medicaid reimbursement rates, or how much the state pays providers to treat Medicaid enrollees, is also coming to a head.
In 2007, Connecticut set the Medicaid reimbursement rates for most physician services at 57.5% of the Medicare rate at the time. The rates have not been broadly adjusted since, meaning many practitioners in the state receive Medicaid payments that are pegged to Medicare rates from 18 years ago — though certain providers, including primary care physicians and OBGYNs, have received rate increases.
Legislators and physicians for years have been sounding the alarm that the prevailing rates were too low, making it unaffordable for them to treat patients with Medicaid coverage, thus decreasing access to care for those residents.
Gov. Ned Lamont had been reluctant to implement broad increases until the state completed a two-part study on Medicaid reimbursement rates. The Department of Social Services published part one last February and part two earlier this year.
Lamont’s budget proposal, unveiled earlier this year, included an increase of $35.4 million in state funding for Medicaid reimbursement to providers over the biennium, including $10.4 million in FY 2026 and $25 million in FY 2027.
The Department of Social Services recommended putting that funding towards increasing payments to health care providers, ensuring that behavioral health providers receive the same reimbursement for children and adults, and other adjustments.
Providers and some members of Lamont’s own party say the proposal falls far short of what’s needed.
“It’s not enough,” Joanne Borduas, chief executive of the Community Health and Wellness Center, said.
The Torrington-based community health center today stopped dental services, which they’ve provided since their establishment over 20 years ago, because they can no longer afford it, Borduas said. The cost to treat a patient is roughly $240 per dental visit, but Medicaid only pays $170, she added.
Tracy Wodatch, the president of the Connecticut Association for Health Care at Home, said the governor’s proposal “sorely underserves” the need.
“Medicaid rates are long overdue for our home- and community-based services for home health,” Wodatch said. “We’ve constantly been battling for Medicaid rates and never received anything.”
Last month, state Democratic leaders unveiled a separate $250 million, four-year plan to increase the rates paid to all providers to at least 75% to 80% of current Medicare rates over four years. For services that don’t have a Medicare equivalent, the state would use other benchmarks, including rates paid by peer states.
Legislators expect to release detailed bill language for that proposal in the coming weeks, Lesser said.