Low Medicaid Reimbursement Rates Threaten Vital Services

New Report Details How Connecticut Medicaid Underpays Healthcare Providers

It’s time to ensure equitable access to healthcare for all Connecticut residents.

Hospitals Pay More to Provide Care Than They Receive in Payments

62¢

Amount Medicaid reimburses for every dollar spent providing care

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74¢

Amount Medicare reimburses for every dollar spent providing care

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$2.8 Billion

Unpaid hospital care provided to Medicaid and Medicare beneficiaries every year

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State Report Confirms Medicaid Underpayment Impacting Care

Connecticut Department of Social Services Releases Medicaid Rates Study Interim Report, Part 1


A new report confirms the alarming situation that healthcare providers have long called for action to address.

Connecticut’s distressingly low Medicaid reimbursement rates lag significantly behind other states and create barriers to healthcare access for low-income residents.

The report findings for physician specialist, dental, and behavioral health services reimbursement in Connecticut largely track what we see in hospitals as well.

Read the report

Last year, the Office of Health Strategy reported that Medicaid only reimbursed 62 cents on the dollar in FY 2022 for hospital services.

The state’s current approach to setting payment rates does not include timelines for rate adjustments to recognize increases or changes in the system, such as inflation, workforce changes, and updates to clinical best practices. Low reimbursement rates deprive Medicaid beneficiaries, who are largely low-income women and children, of access to needed care and social supports and they shift costs to those with private insurance.

Connecticut must take the steps hospitals and health advocates have long encouraged to address the underfunding of Medicaid.

There is a glaring need for action to help all patients.