By Tiffany Williams –
HARTFORD — Governor Ned Lamont and Connecticut Department of Social Services Commissioner Andrea Barton Reeves announced Wednesday a major agreement with the state’s 17 community health centers that will increase Medicaid reimbursement rates and strengthen access to care for nearly half a million residents across Connecticut.
The agreement outlines a three-year plan to gradually increase reimbursement rates for Federally Qualified Health Centers (FQHCs), totaling approximately $80 million by June 30, 2028. The phased rate adjustments, set to begin on October 1, 2025, will reflect the 2023 cost structures of each health center and aim to make payment more sustainable and reflective of the services provided.
“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,” Governor 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 agreement includes several key provisions:
- A phased increase in Medicaid reimbursement rates over three years based on updated cost data.
- A revised “change in scope” process allowing health centers to request rate adjustments as services evolve.
- Alignment of the appeals process for FQHCs with other Medicaid providers, effective January 1, 2027.
- Withdrawal of a pending declaratory ruling request related to rate setting.
Commissioner Barton Reeves said the deal positions health centers to lead in value-based care and supports a broader shift toward improving health outcomes and increasing access to preventative services.
“These investments will position the community health centers to lead in value-based care, improve patient outcomes, and community health,” Commissioner Barton Reeves said. “The Federally Qualified Health Centers are essential partners in delivering high quality, affordable health care to all residents. We look forward to continuing to build our partnership, with the shared goals of addressing the health care needs of Connecticut’s residents and increasing access to preventative care throughout the state.”
The 17 community health centers in Connecticut serve more than 440,000 residents annually, providing critical access to primary care, behavioral health, dental care, and other health services, often in underserved and lower-income areas.
Shawn K. Frick, CEO of the Community Health Center Association of Connecticut (CHC/ACT), praised the collaborative approach that led to the agreement.
“We appreciate the willingness of Governor Lamont and Commissioner Reeves’s teams to continue to work with our health centers towards this agreement,” Shawn K. Frick, CEO of the Community Health Center Association of Connecticut CHC/ACT, said. “Patients across the state will benefit from this investment in primary care.”
Mark Masselli, CEO of Community Health Center, Inc. — the largest provider in the state — added, “Many thanks to all who worked together to achieve this compromise.”
The agreement is expected to bring long-term stability to the community health system while laying the groundwork for new alternative payment models that reward improved outcomes and efficiency.
Connecticut’s investment comes at a time when many states are reevaluating their Medicaid structures, and health care advocates say this move strengthens the state’s commitment to equitable, accessible, and community-based care.