Committees approve renewal to continue Connecticut Medicaid SUD demonstration waiver

Connecticut lawmakers on Friday approved motions in the Human Services and Appropriations committees to renew the state's Substance Use Disorder (SUD) Medicaid demonstration waiver, clearing the way for the state to submit a renewal application to the Centers for Medicare & Medicaid Services (CMS).

The renewal request, presented to the joint panels by Alexis Muhammad, behavioral health contract manager at the Department of Social Services, asks the committees to authorize the state to submit the application to CMS and to extend the waiver's demonstration period through April 2027. "I'm here today to request the committee's approval for the renewal request on the SUD waiver," Muhammad told lawmakers.

Why this matters: The waiver allows Medicaid to reimburse residential treatment and expands access to ambulatory services, including intensive outpatient programs, partial hospitalization and medication-assisted treatment. Muhammad said the federal match varies by eligibility group, with "Husky D is about 82% and Husky A and C is 50%." The renewal, officials said, seeks to preserve those coverage changes while the state continues reinvestment work on rates and bed capacity.

Department officials said the waiver was implemented in April 2022 and that the renewal is framed as a second demonstration period beginning in April 2027. Muhammad said the department plans to submit the application to CMS on March 31, 2026 (she and committee members clarified the year during the hearing). She said the renewal is a collaboration with partner agencies DCF and DEIS.

Lawmakers pressed agency staff on implementation details. Representative Nio asked for a high-level description and the federal match; Muhammad said the waiver made residential treatment Medicaid-reimbursable and expanded ambulatory services and care coordination after emergency-department visits. When asked how many treatment beds the waiver has enabled, Muhammad said the state currently has "a little over,00 beds" in collaboration with partner agencies and that an RFP is under way to solicit more beds; the transcript did not record a precise bed count.

Senator Leser asked whether CMS was likely to approve the renewal; Muhammad said other states with similar SUD waivers have been routinely approved and she did not expect a challenge, while noting a separate justice-involved amendment has not yet received movement at CMS. The department confirmed that the justice-involved waiver is included in the renewal packet as an expressed intent to pursue approval.

Committees' action: The Human Services committee recorded a roll-call vote and the clerk announced "21 yays, two absent," approving the amendment motion. The Appropriations committee subsequently recorded votes and the clerk announced "Total voting 46. Those voting yay 46. None voting nay, none abstaining. Seven absent and not voting." Both motions were declared passed.

What remains: The department said it will submit the renewal application to CMS and will follow up with lawmakers on specific items asked at the hearing, including a clearer bed-count figure and analysis of coordination with opioid settlement funds. The committees announced future hearings on related contracts and bills, and then adjourned.

The motion passed in Human Services was recorded as approving the application to amend the Connecticut Substance Use Disorder demonstration (11-w372/21-w0069) including pending amendments; the Appropriations motion approved the application to extend the Connecticut Substance Use Disorder demonstration (11-w00372/21-w0069) including pending amendments.

The committees recessed after the votes and announced additional public hearings and committee meetings on March 12, March 16 and a deficiency-bill hearing on March 20.