Medicaid Pegged as Biggest Factor in Connecticut’s $365M Budget Shortfall

Connecticut hospitals that rely on Medicaid reimbursement may be falling on harder times, as increased Medicaid costs have contributed to a total budget deficit of $365 million heading into next year, according to a New Haven Register report.

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Medicaid accounts for roughly $260 million of the deficit, which state Budget Director Ben Barnes said was mostly due to higher caseloads and increased use of medical services, according to the report.

Gov. Dannel Malloy (D) said he did not know what state services would be cut to balance the budget, as the state is still working on a “deficit mitigation plan.” Connecticut has, however, submitted a waiver to the CMS that would eliminate Medicaid eligibility for roughly 13,000 beneficiaries.

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