State outlines $12.335 million reinvestment from Medicaid SUD demonstration for treatment, housing and workforce supports

State agency officials detailed how Connecticut is reinvesting federal financial participation generated by the 11/15 Medicaid substance‑use disorder demonstration into treatment, housing and workforce supports.

Rob Haswell, section chief for managed services, said the demonstration, which began generating federal participation in 2022, produced funds that the state must reinvest. "For the amounts beginning in FY26, for Demus, we need about $10,700,000 that we're reinvesting, and for DCF, it's about $1,635,000," Haswell told the council.

Presenters described a set of targeted investments. Haswell said roughly $450,000 per year has been reinvested within Demus' contractor network to cover non‑Medicaid provider costs such as cybersecurity, EHR modifications and workforce training. He said the state set aside up to $2,000,000 to open new non‑Medicaid treatment beds across ASAM levels of care in order to increase capacity and to encourage providers to expand programs.

Haswell reported adult bed capacity figures to show progress and remaining gaps: as of May 1 the adult continuum had about 1,167 beds and the current count was 1,112, with sharp declines at certain ASAM levels that motivated procurement and capacity efforts.

The reinvestment plan also funded housing and shelter expansions, including an effort to expand supported recovery housing and a Shoreline medically oriented recovery house with on‑site nursing and case management intended to serve people with complex medical needs. Haswell said reinvestment dollars expanded the state's sober‑house network (SRHS) to cover all Husky beneficiaries, and supported a new short‑term therapeutic shelter in New Haven serving up to 40 men through a partnership with Cornell Scott.

Under other initiatives, the state used approximately $2,600,000 for projects that included strengthening the statewide 24/7 access line (more staff and transportation for callers), continuing a psychiatric consultation service for perinatal medical providers, a public education campaign on alcohol use disorder, website upgrades to improve transparency of bed and outpatient capacity, and purchasing up to five methadone dispensing pumps to improve medication access.

Carrie Lloyd of DCF said DCF funded a young‑people peer support program and helped change SBIRT coding and adolescent residential rates to expand screening and make adolescent residential care rates more sustainable.

Council members praised the interagency approach. Officials encouraged providers and community partners to monitor Demus and DCF websites for upcoming procurements and employer meetings tied to training and capacity expansion.