Governor Lamont Announces Agreement To Support Community Health Centers With Boost To Medicaid Reimbursement Rates

HARTFORD, CT - Governor Ned Lamont and Connecticut Department of Social Services Commissioner Andrea Barton Reeves today announced that the Lamont administration has reached an agreement with the 17 community health centers in Connecticut regarding a three-year plan to boost Medicaid reimbursement rates for the centers that service 440,000 people across the state each year.

The agreement will phase in rate increases over three years totaling approximately $80 million by June 30, 2028. The deal also clarifies the process for these centers to request rate adjustments based on the scope of services they offer and authorizes collaboration between the state and the centers to develop alternative payment models.

“While Republicans in Congress are defunding Medicaid and raising health care costs for all Americans, here in Connecticut we are making key investments in primary care, dental, and behavioral health,” Governor Lamont said. “Our community health centers are a lifeline for our residents, providing care to all patients regardless of their ability to pay, and this agreement helps to provide sustainable and reliable care for those who count on them.”

“These investments will position the community health centers to lead in value-based care, improve patient outcomes, and community health,” Commissioner Barton Reeves said. “The Federally Qualified Health Centers are essential partners in delivering high quality, affordable health care to all residents. We look forward to continuing to build our partnership, with the shared goals of addressing the health care needs of Connecticut’s residents and increasing access to preventative care throughout the state.”

“We appreciate the willingness of Governor Lamont and Commissioner Reeves’s teams to continue to work with our health centers towards this agreement,” Shawn K. Frick, CEO of the Community Health Center Association of Connecticut CHC/ACT, said. “Patients across the state will benefit from this investment in primary care.”

Mark Masselli, CEO of CHC, Inc., the largest health center in the state, agreed, stating, “Many thanks to all who worked together to achieve this compromise.”

The agreement provides:

• A three-year phase in of new rates, reflective of 2023 costs for each health center, beginning on October 1, 2025.
• A new “change in scope” process.
• Change the appeals process for Federally Qualified Health Centers to align with other Medicaid providers beginning January 1, 2027.
• Withdrawal of the declaratory ruling request.