Medicare and Medicaid

Medicare is the federal health insurance plan for people who are 65 or older, certain younger people with disabilities, and people with End Stage Renal Disease (kidney failure that requires dialysis or a kidney transplant).

Medicaid provides health coverage to millions of Americans including eligible low-income adults, children, pregnant women, elderly adults, and people with disabilities. Medicaid is administered by states, according to federal requirements. States and the federal government fund the program jointly.

Hospitals receive reimbursement from Medicaid for only about 62% and from Medicare for only 74% of what it costs to provide the care to those patients. This underpayment for services amounted to nearly $2.8 billion in 2022. In fiscal year 2022, Connecticut hospitals incurred $1.55 billion in Medicare losses and $1.23 billion in Medicaid losses.