A new state report shows that healthcare costs in Connecticut are growing much faster than expected—and faster than most residents can afford.

According to the Connecticut Office of Health Strategy’s latest Healthcare Benchmark Reports, total healthcare spending grew by 7.8% between 2022 and 2023—more than double the state’s cost growth target of 2.9%. Every major insurance group, including commercial insurers and Medicare Advantage plans, exceeded the benchmark.

“Connecticut residents have struggled with healthcare costs for several years. Too many families delay needed care, cut pills in half, and have to choose between medical bills and basic necessities like rent or groceries,” said Deidre Gifford, MD, MPH, commissioner. “Cost growth at this pace threatens to leave even more of our residents at risk. While quality remains stable, it is important to note that a high-quality system that is unaffordable to residents can’t meet the goal of improving health for everyone.”

While the overall quality of care has remained steady, spending on primary care—the kind of care that can prevent bigger problems down the line—is falling. The state aimed to spend 6.9% of healthcare dollars on primary care in 2023, but only 4.5% was actually spent, down from 4.8% the year before.

Retail pharmacy costs and outpatient hospital services were key drivers of the spending spike.

A public hearing is scheduled for June 23, 2025, to explore solutions with insurers, providers, and pharmaceutical companies. Officials say slowing healthcare cost growth is urgent—especially with potential federal funding changes on the horizon.