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Connecticut Becomes First In Nation To Use New Health Law

by Christine Stuart | Jun 22, 2010 5:00am
(3) Comments | Commenting has expired
Posted to: Congress, Health Care

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Christine Stuart file photo (Updated) Connecticut became the first state in the nation Monday to permanently add 45,000 low-income adults to its Medicaid program under the new federal health reform law.

The new federal law permits states to receive federal funding for providing Medicaid coverage to adults.

Until now, Connecticut covered adults up to 68 percent of the federal poverty level, through the State Administered General Assistance program, which was funded 100 percent by state funds. The new law requires states to cover all low-income adults in Medicaid starting in 2014, but it also allows states to get federal funding to enroll them right away.

Now 60 percent of the cost of care for individuals in the program will be reimbursed by the federal government, resulting in savings to the state.

“I am so proud that after the long, uphill battle in getting the new health care reform law passed, Connecticut will be the first state to permanently expand coverage to some of our neediest residents,” U.S. Rep. Rosa DeLauro, said.

The rest of the Democratic Congressional delegation joined DeLauro in their praise of Rell’s decision to enroll the state early.

“Virtually every step of the way, Connecticut has led the way in embracing the new health care bill, which is covering more Americans and increasing access for millions,” U.S. Rep. Joe Courtney said. “I congratulate Connecticut hospitals for their intelligent leadership pursuing this opportunity.”

Even U.S. Sen. Joe Lieberman, who was partially responsible for the defeat of the federal health bill’s public option, applauded the news.

“Once again I am pleased to see how health care reform is already making a positive impact on Connecticut,” said Lieberman. “Connecticut has been a leader in providing health care to the uninsured and I am proud that ours is the first state in the nation to expand Medicaid coverage to low-income adults who were previously covered by the SAGA program.”

Republican Gov. M. Jodi Rell, who jumped at the opportunity to save the state $53 million over the next 15 months by moving the SAGA population to Medicaid, said “with this federal help, we will be able to provide increased medical benefits for them through Medicaid while relieving the burden on state taxpayers.”

However, Rell wasn’t as welcoming of the federal health law when it was passed back in March saying it would cost the state millions of dollars instead of saving the state millions of dollars.

“We’re the ones left to figure out the bill, left to see if it can work and determine how much it will cost,” Rell said in March. “This much, however, I can tell you already: Connecticut, like nearly every other state, cannot afford millions and billions in costs that Washington passes along. It’s that simple.”

But apparently it wasn’t that simple.

Attorney General Richard Blumenthal said Friday that the decision by Rell to apply for this funding played a central role in his decision to deny a request by 12 Republican state senators to join a multi-state lawsuit against the new federal health reform law.

The Centers for Medicare & Medicaid Services approved Connecticut’s state plan amendment on Monday, making it the first in the nation to take up this new option.

“Connecticut’s action will allow its low-income, uninsured residents to be among the first Americans to realize the full benefits of the Affordable Care Act,” said Marilyn Tavenner, acting administrator of CMS. “We hope other states will follow Connecticut’s example and not wait four years to provide health benefits to those who desperately need them.”

U.S. Health and Human Services Secretary Kathleen Sebelius added to the praise for Connecticut .

“We applaud Connecticut’s speedy action to expand coverage for its lowest-income residents who will now have reliable access to affordable, quality care as a result of the incentives contained in the Affordable Care Act,” said Sebelius.

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(3) Comments

posted by: thomas hooker | June 25, 2010  2:37pm

Typical blatant hypocrisy by Republican Governor Rell.  She tells Nutmeggers that the health care bill is bad for the state.  But when it’s passed, she can’t wait to pick up $53 million in federal funding for poor residents, and also to trumpet her being the first in the country to do so. 

Incredible.  Tell me again why she’s popular in this state.

posted by: Matt W. | June 25, 2010  5:01pm

Matt W.

She’s popular b/c even though she lost the argument on health care, she’s not pouting about it, she’s doing what’s in the best interests of the state. 

I can’t stand her but it doesn’t help anyone to take your ball and go home. I suppose you’d prefer she were a bit more ideologically rigid? 

If she were running again and using it as a photo op, I might agree but she’s got nothing to gain here.  She lost the argument so she’s making the best of it. I’ve got no problem with that.

posted by: judgejoyce | June 25, 2010  5:24pm

As to this subject we should forget politics and just think of all the people who will now have medical insurance and didn’t have it previously.  In the 28 years I served as a U.S. Administrative Law Judge in the Social Security Administration I saw too many people whose illnesses were exacerbated by their inability to find treatment without health insurance.  I forsee saving hundreds of thousands of dollars in disability payments for all those who will be able to manage diseases like diabetes and work while they do so - but previously could not work because they couldn’t afford insulin and correct treatment.  This is a great thing for the people of the state of Connecticut.  It is time to put the politics aside and take care of our people.