June 24, 2010. Connecticut has become the first state to expand Medicaid eligibility prior to the 2014 deadline established in the Patient Protection and Affordable Care Act (PPACA).
PPACA, signed by President Obama in March, requires states to expand Medicaid coverage to all individuals up to 133 percent of the federal poverty level by 2014. However, states that expand coverage prior to this deadline can receive federal funding early. In order to take advantage of this advance funding, Connecticut will be transferring the approximately 45,000 low-income childless adults covered under its State Administered General Assistance (SAGA) program to its Medicaid program. The state estimates it will save $53 billion through July 2011 as a result of this transfer.
Connecticut will receive its current federal Medicaid matching rate (60 percent) for the early expansion, but it will join remaining states in receiving the 100 percent matched funds for this new eligibility group starting January 1, 2014. The 100 percent matching rate will last for three years, with a gradual decline to 90 percent beginning in 2017.