Medicaid payments for 900K patients in CT at risk as deficit, deadline loom

CT Insider – Thursday, May 15, 2025
By Ken Dixon

Warning that the next round of Medicaid payments covering health benefits for more than 900,000 low-income, elderly and disabled state residents is at-stake, Speaker of the House Matt Ritter promised action next week to deal with a $300 million deficiency in the program in the budget year that ends June 30.

Without legislation, scheduled payments would fail to go out on May 23, Ritter said, calling the stakes high, with the financial ramifications spilling over into the active negotiations with Gov. Ned Lamont over the use of surplus funds, financial rules put in place in 2017 and the next two-year budget.

Also at-risk would be payments to cities and towns for programs including local schools, if an agreement over the issue isn’t reached with the governor’s staff.

House Minority Leader Vincent Candelora described the issue as “a food fight” between majority Democrats and the governor.

“How you resolve this is the key,” Ritter told reporters in his State Capitol office Thursday morning, detailing a closed-door Wednesday caucus of majority House Democrats on the issue. “The whole budget is on the Medicaid deficiency. We’re prepared to vote on Monday.” He said that Lamont does not want any revenue increases. “Yet they want us to cut all the things that we think are important. Good budgets aren’t free.”

Ritter said House Democrats plan to work within the statutory spending cap. He said that the estimated $360 million in an interest-bearing account of federal pandemic relief can be used to fill the Medicaid deficit.

“This is a very, very big vote on a difficult issue,” Ritter said, describing a “tough” night of negotiations on Wednesday between House and Senate Democrats and the governor’s staff. “Medicaid checks won’t go out if we don’t solve this. I think the governor wants to get there.” He said that without addressing the Medicaid shortfall, the financial ramifications could spill over into state grants.

“I don’t know how it all gets paid for unless you go to the mayors and say we’re cutting your (school funding) and we’re cutting your (payments in lieu of taxes),” Ritter said. “That’s probably what you’re looking at. So you have a $2 billion surplus and you call the mayor of Waterbury and say you’re down 10 million bucks. That’s how you balance the budget. You call (Bridgeport Mayor) Joe Ganim and say you’re down $14 million because we couldn’t figure out a Medicaid deficiency with a $650 million operating surplus and a $2 billion surplus.”

The issue comes at a time when the Republican Congress is planning on major changes to Medicaid, which requires a state match to federal funding. Tiffany Donelson, president and CEO of the Connecticut Health Foundation, said in a Thursday statement the current proposal will make it tougher for people to access the program and shift more costs to the states.

“It will not improve people’s health, support health care providers, or lead to more employment and economic well-being,” Donelson said. “Instead, this proposal, if it becomes law, will add administrative hassles to individuals, families, and state agencies, and cause millions of people to lose coverage.” Lawmakers including Ritter and Senate President Martin Looney already anticipate a special legislative session in the fall to

House Minority Leader Candelora, R-North Branford, said the tensions among Democrats is a sign of escalating tension among the Democratic governor and the House and Senate Democratic majorities of 102-49 in the House and 25-11 in the Senate.

Candelora said that his caucus “proposed the only balanced budget” in the Capitol. He said the Medicaid payments issue is concerning. “We’re hearing about nursing home strikes. If checks are held, that impacts all of their ability to provide services,” he said. “I don’t want to see our health care system falling victim to a food fight between the governor and Democrats.”

Lamont, speaking after an unrelated event in Danbury, said that the pressing need for the short-term Medicaid funding will be accomplished. “We sat down with the leaders,” he said. “We’re going to find a way that we can work together and get this done. Obviously the Medicaid cost overruns, which is happening in 49 other states, is costing us well over $240-$250 million, so we’re going to have to make some adjustments there. And you’re not going to make it just by cutting services.”

Access this article at its original source.