Fewer psychologists and social workers in Connecticut accept patients covered by Medicaid compared to neighboring New England states. That’s according to a November report from the state Office of Health Strategy (OHS) on Connecticut’s demand and supply gap for mental health care.
Latest OHS data showed that more than 1.5 million people in Connecticut lived in places with mental health workforce shortages. That shortage comes as one in five adults statewide has experienced a mental health disorder.
The reimbursement rates by state Medicaid, or HUSKY, were as low as 47% compared to commercial insurance rates. That gap comes as more people covered by HUSKY utilized the emergency department and were admitted to inpatient units, compared to those covered by private insurance.
The rates of outpatient follow-up after a visit to the emergency department, or after an inpatient behavioral health episode, were also better for people who were privately insured, according to the report.
“Addressing payment parity, by ensuring behavioral health care providers receive payment rates comparable to their physical health providers, is one important piece of a complex issue,” said Dr. Deidre Gifford, OHS commissioner. “The data, and the literature, tell us that no one solution will address the gap between need for care and accessible services or service providers. Peer support, telehealth, crisis care and school-based health care among other approaches, merit further exploration as well.”
Connecticut Medicaid rates for behavioral health services for people age 20 and below went up July 1, 2024, representing an estimated additional aggregate expenditure of $13.8 million in state fiscal year 2025 and $15.5 million in state fiscal year 2026, according to the report.
