WEEKLY UPDATE: 02/27/25
This week, multiple public hearings were held on Governor Ned Lamont’s proposed state budget for the upcoming 2026-2027 biennium, including policies that would be harmful to Connecticut hospitals.
Hospitals and health systems continue to speak out at these hearings, providing written and verbal testimony in opposition to proposals that would result in an increase in the amount hospitals pay in taxes and a reduction in payments to hospitals by hundreds of millions of dollars.
On Wednesday, February 26, the Finance, Revenue and Bonding Committee held a public hearing on SB 1246, An Act Concerning Revenue Items To Implement The Governor’s Budget. Hospitals and advocates spoke against the provisions of the bill that would amend the hospital tax and supplemental payments established pursuant to the hospital settlement agreement.
On Friday, February 28, the Appropriations Committee is scheduled to hold a public hearing on the governor’s budget proposal, HB 6864, An Act Concerning The State Budget For The Biennium Ending June Thirtieth, 2027, And Making Appropriations Therefor. While SB 1246 contains policies related to revenue within the governor’s budget, HB 6864 contains the appropriations provisions related to the same proposed rebasing of the hospital tax.
“These policies are unsound and will cause irreparable harm to hospitals, patients, and employers,” the Connecticut Hospital Association (CHA) stated in testimony.
CHA’s testimony opposing SB 1246 also detailed Connecticut hospitals’ Medicaid redesign strategy to better support patients and communities now and in the future.
“We believe that the hospital tax program could serve as one of several sources of funds necessary to carry out these recommendations,” CHA stated in testimony. “By advancing the hospital tax policies in SB 1246, we will lose the opportunity to make long-term, meaningful improvements to the Medicaid program.”
In an op-ed published in CT Post on Thursday, CHA CEO Jennifer Jackson reiterated there is a better way to maintain access to essential services, preserve the health care workforce, and improve the health outcomes of all Connecticut residents, and Connecticut hospitals’ Medicaid redesign is that better way.
“The hospital tax can be part of this solution, but not if it is used simply to bolster the state budget and add more strain to hospitals at a time when they are already struggling,” Jackson wrote. “Connecticut hospitals are instead proposing to make adjustments to the hospital tax program to support substantial improvements in reimbursement and new investments in a broad range of community health initiatives.”
What Advocates Are Saying:
- Read CHA’s testimony on SB 1246 here
- Read testimony from hospitals and other advocates here
- Watch a recording of Wednesday’s Finance, Revenue and Bonding Committee public hearing here
- Watch Friday’s Appropriations Committee hearing live on CT-N here
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