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Home Business Journals

State community health centers get Medicaid boost from Gov. Lamont

Three-year deal will phase in rate increases totaling $80M for 17 facilities

Gary Larkin by Gary Larkin
July 17, 2025
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HARTFORD – The Lamont administration has reached an agreement with the 17 community health centers in Connecticut regarding a three-year plan to boost Medicaid reimbursement rates for the centers that service 440,000 people across the state each year.

The agreement will phase in rate increases over three years totaling approximately $80 million by June 30, 2028.

“While Republicans in Congress are defunding Medicaid and raising health care costs for all Americans, here in Connecticut we are making key investments in primary care, dental, and behavioral health,” Gov. Lamont said. “Our community health centers are a lifeline for our residents, providing care to all patients regardless of their ability to pay, and this agreement helps to provide sustainable and reliable care for those who count on them.”

The deal also clarifies the process for these centers to request rate adjustments based on the scope of services they offer and authorizes collaboration between the state and the centers to develop alternative payment models.

Of the 17 health centers, five are located in Fairfield County: CIFC Health in Danbury; Family Centers Inc. in Greenwich, New Canaan, and Stamford; Norwalk Community Health Center; Optimus Health Care in Bridgeport and St

“These investments will position the community health centers to lead in value-based care, improve patient outcomes, and community health,” state Department of Social Services Commissioner Barton Reeves said. “The federally qualified health centers are essential partners in delivering high quality, affordable health care to all residents.”

The agreement provides:

  • A three-year phase in of new rates, reflective of 2023 costs for each health center, beginning on Oct. 1, 2025.
  • A new “change in scope” process.
  • Change the appeals process for federally qualified health centers to align with other Medicaid providers beginning Jan. 1, 2027.
  • Withdrawal of the declaratory ruling request.

 

 

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