On Wednesday, February 5th, Gov. Ned Lamont addressed the joint session of the Connecticut State House of Representatives and State Senate. In his remarks, the governor outlined a balanced strategy for Connecticut’s future. With over $1 billion in spending increases over the next two years, investments target early childhood education, infrastructure, schools, and housing. He also highlighted efforts to reduce pension debt, ease property taxes, and boost municipal aid. The plan celebrates strong economic growth and low unemployment, focusing on overall affordability for all residents.
As reflected in Gov. Lamont’s address, healthcare costs emerged as a significant challenge, with Medicaid and pharmaceutical expenses straining the state’s fiscal framework. The governor emphasized that while Connecticut boasts some of the best hospitals and health insurance in the nation, these high-quality services come at a steep price that threatens long-term sustainability. Efforts to manage these rising costs include innovative measures such as a proposed reference pricing model set at 240% of Medicare rates for state employees and retirees. This initiative is expected to cut out-of-pocket expenses and generate an estimated $100 million in savings, demonstrating a strong commitment to cost control.
Collaboration is also a key component of the strategy. Comptroller Sean Scanlon is working closely with hospitals to reduce the costs associated with employee hospitalizations, aiming to balance enhanced care quality with financial prudence. To support Medicaid recipients, an additional $70 million has been earmarked for Medicaid rate increases, acknowledging the need to better serve the chronically ill and seniors who might otherwise rely on costlier alternatives such as nursing homes.
The governor’s address further tackled the issue of soaring pharmaceutical costs by proposing measures such as capping generic drug price increases to the Consumer Price Index, expanding the ArrayRx discount card program, and exploring the import of more affordable pharmaceuticals from Canada. These steps are designed to alleviate the financial burden on patients and the state alike. Moreover, the expansion of the ICHRA program by Access Health CT signals a commitment to reducing healthcare costs for small businesses. Finally, the budget underscores the importance of addressing the needs of vulnerable populations, particularly those facing addiction and mental health challenges, by ensuring they have access to supportive housing.
Ultimately, Gov. Lamont and his team have aimed to craft a budget reaffirms Connecticut’s commitment to high-quality healthcare by ensuring that innovative cost-control measures and strategic investments today secure a healthier future for all residents.
Learn more and read the full text of the budget address here: https://portal.ct.gov/governor/news/speeches/governor-lamont-fiscal-year-2026-2027-biennial-budget-address?language=en_US
