AN ACT CONCERNING MEDICAID RATE INCREASES.

This bill requires the Department of Social Services to increase Medicaid reimbursement rates for healthcare providers starting July 1, 2026, with the goal of reaching at least 75% of Medicare rates by June 30, 2029. The law establishes a five-state benchmark using average rates from Maine, Massachusetts, New Jersey, New York, and Oregon to determine increases for services without corresponding Medicare rates. Additionally, the bill mandates annual rate adjustments after 2029 based on Medicare rate comparisons, the five-state benchmark, or changes in the Medicare Economic Index to account for inflation. A separate oversight council must review provider reimbursement rates annually and report to the legislature with recommendations on necessary funding to maintain adequate compensation for healthcare providers.