Connecticut Lawmakers Under Pressure to Increase Medicaid Payments
With potential federal Medicaid cuts on the horizon, Connecticut lawmakers are feeling the heat to boost payments for doctors and hospitals serving Medicaid patients. Senator Jason Perillo (R-Shelton) shared his thoughts on why it’s crucial for the state to act and expressed hope for bipartisan progress next year.
Mike Hydeck: As we look ahead to the next legislative session, healthcare costs are set to be a hot topic. For those on the HUSKY Medicaid plan, securing a doctor’s appointment can be quite a challenge. One major factor is that doctors only get about 60 cents for every dollar they bill when treating HUSKY patients. So, what’s behind this, and will anything change soon? Senator Jason Perillo, who is the ranking member on the Human Services Committee, will be involved in these discussions when the session kicks off. Welcome back, Senator. This issue has been around for years in Connecticut. Why is it so hard to resolve?
Jason Perillo: Well, Connecticut has among the lowest rates for reimbursing doctors and hospitals for taking on Medicaid patients. This has been a longstanding issue. It all boils down to the state budget. We need to commit to increasing provider payments; otherwise, we’ll keep encountering access problems. If someone on HUSKY struggles to find a doctor, it’s largely because there aren’t many doctors willing to accept HUSKY patients. Essentially, the options for care are limited, as doctors can only take on so many patients due to time and space constraints. Naturally, they prefer patients who pay a higher rate, and that’s the crux of the problem that we need to address seriously.
Mike Hydeck: So, if doctors are only receiving 60 cents, they can only accommodate so many patients. They’re running a business and have to make a living, too. What’s the first step towards fixing this? Yes, it’s about the budget, but where will the money come from? We’ve talked about a surplus for years now.
Jason Perillo: Some proposed solutions for improving access involve creating new state programs. The governor has suggested a plan called the Connecticut Option, but we really don’t need more complex programs when it comes to patient care. The solution is straightforward: we need to allocate more funds in the budget. Providers must be compensated fairly for their work, and hospitals need to be able to accept those Medicaid patients. The only way they can stay afloat is by receiving more payments from commercial insurers, which, in turn, raises premium costs for everyone else—including businesses and employees. It’s a vicious cycle.
Mike Hydeck: Exactly. People argue that without increasing reimbursement rates, premiums are likely to rise for everyone. Chris Collibee, a spokesperson for Governor Lamont’s budget office, responded that the governor is in favor of sustainable Medicaid rate increases but believes large corporations should take responsibility for providing healthcare benefits instead of passing those costs to taxpayers. What’s your take on that?
Jason Perillo: Well, large employers typically do provide insurance for their employees—that’s a standard benefit. If the governor thinks some are unfairly shifting costs to HUSKY, we need to tackle this by increasing the budget, ensuring that doctors and hospitals receive fair rates. That really is the only solution.
Mike Hydeck: The governor has mentioned during his campaign—though that should be taken with a grain of salt since he’s aiming for reelection—that some companies need to pay their employees better. For example, while Amazon offers some benefits to part-time workers, companies like Walmart, often highlighted in discussions, tend to pay around $20 an hour but do not provide health benefits, placing employees on the state plan, which ultimately falls on taxpayers. Perhaps this is what he means.
Jason Perillo: That’s a fair point, but we need to be crystal clear: we can’t shift the blame to anyone else except for us, the state of Connecticut. The responsibility lies with us to ensure hospitals and doctors are compensated fairly. The solution is increasing their pay; it’s really that simple.
Mike Hydeck: With the legislative session set to begin in January, what should be the first action? Should your caucus propose something and kick off the process? What’s the initial step towards resolving this issue?
Jason Perillo: I expect there will be proposals to increase reimbursement rates, at least from me and many of my Republican colleagues. I’ve spoken to some Democrats, and they share similar sentiments. This could be a year where bipartisan support becomes a reality, and that’s the aim; it’s always better to address issues this way if we can.
Mike Hydeck: Small business owners and the remaining independent doctors, who are increasingly rare due to larger entities acquiring practices, would likely be quite grateful if positive changes came about.
Jason Perillo: Absolutely.
Mike Hydeck: Thank you, Senator Jason Perillo, for sharing your thoughts with us this morning.
Jason Perillo: Thank you.
