CT extends $80 million lifeline to HUSKY Medicaid clinics. But is it enough to counter Trump's cuts?

The new, three-year agreement boosts HUSKY Medicaid reimbursements, which haven't risen in nearly 20 years. But it may not be enough to counter deep cuts from Washington.

John Craven

Jul 16, 2025, 8:49 PM

Updated 5 hr ago

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Connecticut’s most vulnerable people – children, parents struggling to make ends meet and people with disabilities – rely on community clinics for basic medical care.
They’re facing deep Medicaid cuts from the federal government.
But now, the state of Connecticut is stepping in with a lifeline. A new budget agreement boosts Medicaid payments by $80 million over the next three years.
CRITICAL NEED FOR PATIENTS
Chennel Bell is a working mother struggling to make ends meet. Thanks to HUSKY Medicaid, she is able to see a doctor at the Norwalk Community Health Center.
“I had my baby here,” she said. “And I come here often for weight loss, for my heart.”
Bell is one of 440,000 patients who rely on Connecticut’s 17 Federally Qualified Health Centers. Even before the cuts from Washington, clinics were cutting back – because the state hasn’t raised HUSKY reimbursement rates in almost two decades.
“Earlier this year, due to our low reimbursement rates and high costs, we made the difficult decision to suspend dental services in our Torrington and Winstead locations,” said Community Health & Wellness Center CEO Joanne Borduas. “Many of us have reduced hours, services are being scaled back, and of course dental services have been impacted.”
MORE MONEY, BUT STILL QUESTONS
On top of the extra funding, Gov. Ned Lamont’s office said the agreement also makes it easier to request rate adjustments:
  • 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.
Clinics said the extra money will help – for now. But they’re still nervous about the federal cuts.
President Donald Trump’s “One Big Beautiful Bill” slashes $1 trillion from Medicaid, makes it harder for patients to qualify and cuts provider tax reimbursements for hospitals.
But most of those changes don't happen for another two years.
“We wanted to get ahead of what the feds are doing, so that's part of this $80 million, Lamont said. “It’s on top of what we’ve done with ARPA [the American Rescue Plan Act] and bonding and the such. I wanted them to know what they can count on – at least for the next three years – from us.”
Lamont’s budget office is still analyzing the full impact of the cuts on state finances. They plan to issue a report by early August.
“From FQHCs and Medicaid all the way to the state Department of Education, Department of Labor, staffing issues, everything in between,” said Connecticut House Speaker Matt Ritter (D-Hartford).
More immediately, clinics are concerned about the Trump administration's decision this week to cut funding for undocumented immigrants. The impact is still unclear on the up to 60,000 undocumented patients who visit federally qualified health centers each year in Connecticut.
BLAME GAME
Meantime, Republicans blamed Connecticut’s Medicaid crisis on Democrats – not Trump.
“Democrats are claiming victory while once again pointing fingers at President Trump, failing to fully acknowledge the depth of the crisis or the fact that they had the power to do something about it – and chose not to," said House GOP leader Vin Candelora (R-North Branford). “They’ve picked winners and losers – prioritizing federally qualified health centers, while hospitals, doctors, dentists and other providers continue to struggle with inadequate rates."
Back at the clinic, Bell doesn’t care about the politics. She’s just worried about losing her health insurance.
“Working and having to pay for insurance is going to be really tough for me to do because economically, everything is getting higher,” she said. “I don’t think I’ll be able to afford the medication or doctor’s appointments.”