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SB 440

AN ACT REQUIRING MEDICAID REIMBURSEMENT RATES NOT TO FALL BELOW NINETY PER CENT OF MEDICARE REIMBURSEMENT RATES.

2025 Regular Session Introduced by Saud Anwar

Connecticut would require Medicaid to reimburse providers at minimum 90% of Medicare rates, expanding access but significantly increasing state healthcare spending.

REF. TO JOINT COMM. ON Human Services
#healthcareproviders #medicaid
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Bill Summary · SB 440

Legislative bill overview

SB 440 would require Connecticut's Medicaid program to reimburse healthcare providers at rates no lower than 90% of what Medicare pays for the same services. This establishes a floor for Medicaid reimbursement rates pegged to federal Medicare payment levels. The bill was introduced by Senator Saud Anwar and referred to the Joint Committee on Human Services in January 2025.

Why is this important

Medicaid reimbursement rates significantly affect provider participation in the program—many physicians and facilities refuse Medicaid patients when rates are too low relative to Medicare or commercial insurance. This bill could influence healthcare access for Connecticut's approximately 800,000+ Medicaid beneficiaries. It also has substantial budget implications, as raising reimbursement rates increases state spending on the program, which consumes roughly 20% of Connecticut's general fund.

Potential points of contention

  • State budget impact: Raising Medicaid rates to 90% of Medicare levels would significantly increase annual costs; the state would need to identify funding sources or reduce other programs
  • Provider participation vs. sustainability: While higher rates may attract more providers to serve Medicaid patients, sustained higher reimbursement may be fiscally unsustainable without federal matching fund increases or tax increases
  • Medicare rate variability: Medicare rates fluctuate by region and service type, creating complexity in implementation and potential unintended consequences across different provider types and geographic areas

Compiled from official sources — confirm details with the bill’s official record.

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