Medicare and Medicaid

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.

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).

Hospitals receive reimbursement from Medicaid for only about 58% and from Medicare for only 80% of what it costs to provide the care to those patients. In FY 2024, this underpayment for services amounted to nearly $3 billion. Connecticut hospitals incurred $1.46 billion in Medicaid losses and $1.51 billion in Medicare losses.