Connecticut will continue to receive the statutory minimum federal reimbursement rate for its Medicaid expenses in fiscal year (FY) 2027.
The federal Department of Health and Human Services (DHHS) recently announced its FY 2027 rates for Federal Medical Assistance Percentages (FMAP), the rate of matching funds states receive from the federal government for Medicaid expenses.
Connecticut will continue to receive a 50 percent rate through FY 2027, from October 1, 2026, to September 30, 2027. That rate is the lowest matching rate statutorily allowed under the program. Reimbursement rates are calculated so that states with lower per capita incomes relative to the national average receive a higher reimbursement rate, and those with higher per capita incomes receive lower reimbursement rates.
Connecticut’s per capita income has grown steadily over time. According to the Federal Reserve of St. Louis, per capita personal income was $93,235 in 2024. That was the third-highest in the nation, behind only Massachusetts and Washington, DC.
That rate is unchanged from 2024 and 2025 and down from fiscal years 2022 through 2023 when the federal government passed law temporarily bumping the FMAP rate 6.2 percent in response to the public health emergency created by the COVID-19 pandemic.
The state’s FMAP rate is also used to determine the federal share of other programs including for the Temporary Assistance for Needy Families program and the clawback rate for Medicare Part D, which covers prescription drugs.
The state will also receive a 65 percent enhanced FMAP (E-FMAP), which is used to calculate the reimbursement rate for services and the administration of the state’s Children’s Health Insurance Program. The E-FMAP rate is calculated by reducing a state’s FMAP share by 30 percent. As with FMAP, Connecticut will also receive the lowest E-FMAP reimbursement rate.
Mississippi has the highest FMAP rate for FY 2027, at 77.32 percent. Several U.S. territories receive higher rates. They are not calculated in the same way as FMAP rates for states. A 2023 federal law set permanent rates for those territories.
Connecticut is one of eight states receiving the lowest FMAP reimbursement rate for FY 2027, many of which are located in the Northeast.
According to the Kaiser Family Foundation, Connecticut’s FMAP rate has remained consistently at the minimum rate of 50 percent except between 2022 and 2023 and in 2009 when a separate law temporarily boosted FMAP rates in response to the recession.
The news that Connecticut’s FMAP will remain at the statutory minimum comes amid uncertainty about Medicaid funding after the passage of HR 1, also known as the One Big Beautiful Bill Act (OBBBA). The bill contained a 15 percent cut to Medicaid funding over 10 years. Starting in 2026, it also eliminates an incentive to expand Medicaid under the Affordable Care Act (ACA), also known as Obamacare. The ACA allowed states to expand Medicaid coverage to individuals who made up to 138 percent of the federal poverty level. The incentive allowed states to receive a 90 percent reimbursement rate for individuals in that population.
The OBBBA also instituted work requirements for some Medicaid recipients, set to go into effect in January 2027, and requires states to more frequently check that some Medicaid enrollees are eligible for services, now requiring this to occur every six months instead of annually. That change is anticipated to impact the Department of Social Services.
Connecticut’s Medicaid costs are also set to rise significantly in the next few years. The state’s fixed costs are projected to rise by $2.1 billion between now in 2030, driven by a $1.2 billion increase in Medicaid costs. The state is facing an $80 million Medicaid shortfall this year alone, caused in part by hospital and pharmacy costs that are higher than budgeted. Health insurance premiums are also expected to be impacted by the possible expiration of the Affordable Care Act’s enhanced premium tax credits. A vote on extending those tax credits this month was part of a deal to end the federal government shutdown.
Topics on this page
Republish our articles for free, online or in print, under a Creative Commons license.
Maybe Connecticut (run by the tax and spend democratic party) will now investigate fraud and waste in its programs, and families that have been on government assistance for decades. The democrats that run Connecticut have abused the funding received from the federal government and will now have to rethink their decisions since their gift of cash from the feds is NO longer going to Connecticut that recklessly gives benefits to illegals and criminals that are committing fraud. If Connecticut democrats concentrated on their reckless spending instead of using their time to jump in front of the local media cameras and constantly whining about the POTUS maybe Connecticut taxpayers would be better served.
More Red State / MGA welfare while blue states pulling the Fed Budget wagin get screwed.