by Donald Eng
HARTFORD, CT — State and community health officials said patients are the big winners under an agreement to boost Medicaid reimbursement rates by about $80 million over three years.
Representatives from Connecticut’s community health centers, legislative leaders, and Gov. Ned Lamont announced the deal publicly Wednesday at the Capitol.
“Here in Connecticut we are making key investments in primary care, dental, and behavioral health,” 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.”
The agreement will phase in the increases 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.
The community health centers serve about 440,000 people combined each year.
Department of Social Services Commissioner Andrea Barton-Reeves said the additional funding would position community health centers to continue providing value-based care and improve patient outcomes and community health. She called the centers “essential partners in delivering high-quality, affordable health care to all residents.”
She added that the centers were “always present, all the time, for everyone.”
Mark Masselli, CEO of Hartford-based CHC, Inc., the largest community health center in the state, agreed, saying his center provides care to “everyone who walks through our doors.”
State Rep. Jillian Gilchrist speaks during during the announcement of increased Medicaid reimbursement for the state’s Community Health Centers on July 16, 2025. Credit: Donald Eng
State Rep. Jillian Gilchrist, D-West Hartford, also touted the universal care aspect of community health centers, which, “at their core, believe access to health care is a human right.”
The announcement of the increased funding comes at a time when programs like Medicaid are facing steep cuts in federal funding. Senate President Pro Tempore Martin Looney, D-New Haven, described the situation as “an eclipse and a tsunami at the same time.”
Gov. Ned Lamont speaks State Rep. Jillian Gilchrist speaks during the announcement of increased Medicaid reimbursement for the state’s Community Health Centers on July 16, 2025. Credit: Donald Eng / CTNewsJunkie
Lamont, though, said the rate increases would buy time for the state to prepare for future federal cuts, which are scheduled to take effect after the 2026 elections.
House Speaker Matthew Ritter, D-Hartford, also criticized the federal cuts, calling them counterproductive and unlikely to save the government any money since patients will wind up in emergency rooms.
“When you cut primary care, people still need it,” he said. “They’ll just find a way to get it that will be more expensive.”
Lamont, though, stressed that community health centers remained an effective treatment option for everyone in the state.
“We take care of you, no questions asked,” he said. “We found out during COVID, we’re all in this together. That’s the meaning of public health.”
House Republican Leader Vincent Candelora, R-North Branford, and State Rep. Tammy Nuccio, House Ranking Member of the Appropriations Committee, said they agree with Democrats that Medicaid reimbursements rates are a serious problem in Connecticut, but called Wednesday’s announcement “misleading.”
“They’ve picked winners and losers—prioritizing federally qualified health centers, while hospitals, doctors, dentists, and other providers continue to struggle with inadequate rates,” Candelora said in a statement. “Recognizing the seriousness of the problem, House Republicans proposed more than $137 million to improve Medicaid reimbursement rates across the healthcare system. But the final budget passed by Governor Lamont and legislative Democrats included nowhere near what’s needed to fix the problem.”
Much of the healthcare system and the citizens who depend on it will continue to suffer, Candelora said.
“We brought forward this plan in meetings with the Governor and his staff during the session,” said Nuccio, R-Tolland. “I’m glad the administration finally came around, but let’s be clear: this agreement wasn’t sparked by political rhetoric—it was driven by Republican leadership and a real plan to strengthen access to care for those who need it most.”