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Plan P · source-labeled figures only

Wages versus Medicaid rates: a source-labeled squeeze check

A narrow comparison of Connecticut government figures for labor cost and Medicaid reimbursement. It does not decide whether a rate is adequate, calculate a provider margin, or identify why any rate changed.

  1. 1

    Federal government

    Investigators and oversight reviewers can trace each displayed figure to a government source and keep wage, cost, and reimbursement concepts separate.

  2. 2

    Lawyers

    Counsel and whistleblower advocates can evaluate the cited records without treating this arithmetic display as a legal, accounting, or intent finding.

  3. 3

    Journalists

    Reporters and researchers can identify the date, unit, and source attached to every number before describing any trend.

  4. 4

    Families

    People with disabilities and their families can see the same source-stated figures in a short, plain-language comparison.

Effective January 1, 2026

Two official measures with different bases

Labor benchmark

$16.94 / hour

Connecticut minimum wage

The Connecticut Department of Labor states $16.35 per hour for 2025 and $16.94 per hour for 2026. The $0.59 change equals 3.61%, calculated from those two source-stated figures and rounded to two decimal places.

Boundary: A statutory wage floor is not the employer’s total hourly labor cost.

Reimbursement adjustment

4.9% increase

ABI waiver service-provider rates

Connecticut DSS states that reimbursement rates for ABI and specified other waiver service providers increased 4.9% effective January 1, 2026. Current dollar rates remain service-, code-, unit-, and effective-date-specific in the official fee schedule.

Boundary: A reimbursement adjustment is not a worker wage, provider profit, or finding about a particular claim.

Do not subtract these percentages to infer a margin. The wage change and the reimbursement adjustment use different bases. The official fee schedule and a provider’s documented service costs are needed for any service-specific comparison.

Official HCBS study example

How labor cost can extend beyond an hourly wage

The Connecticut Medicaid Rate Study displays the following worked rate-build example. The report describes it as a point of comparison and expressly says it does not reflect recommended reimbursement rates. It is not presented here as an ABI fee-schedule amount.

Source-stated components in the Connecticut HCBS rate-build example
Component Source label Source-stated basis Source-stated amount
A Hourly wage $19.43 $19.43
B Employee-related expenses 25.05% $4.87
C Productivity factor 1.24588 $5.97
Subtotal Direct-service-provider wage and benefits Study subtotal $30.27
D Program-related expenses 20.40% $3.96
E General / administrative 11.25% $4.34
Total Total cost per hour Study total $38.57

The study explains that employee-related expenses may include payroll taxes, workers’ compensation, health insurance, and other benefits, while the productivity factor accounts for billable and non-billable time. Those categories are source descriptions, not findings about a specific provider.

Source register

Trace every figure to the government record

Connecticut Department of Labor

Wage and Workplace Standards

Source for the $16.35 minimum wage effective January 1, 2025, and the $16.94 minimum wage effective January 1, 2026.

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Connecticut Department of Social Services

SPA 26-A public notice

Source for the 4.9% ABI waiver service-provider rate increase effective January 1, 2026.

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Connecticut Department of Social Services

Connecticut Medicaid Rate Study — Phase 2

Source for the worked HCBS rate-build example and its express limitation that the example is a point of comparison, not a recommended reimbursement rate.

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Connecticut Medical Assistance Program

Current provider fee schedules

Official location for current service-specific maximum fees, effective dates, end dates, and billing units after accepting the site terms.

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