WEEKLY UPDATE: 10/02/25
The Connecticut Hospital Association (CHA) delivered a presentation detailing the impacts of H.R.1, the One Big Beautiful Bill Act (OBBBA), on Connecticut hospitals and health systems at an informational forum hosted by the General Assembly’s Insurance and Real Estate Committee on Wednesday, October 1.
CHA Senior Vice President of Policy Paul Kidwell explained that chronic underinvestment in Medicaid, compounded by growing operating expenses, has left Connecticut hospitals struggling financially. Kidwell said about 60% of payments made to hospitals are derived from the federal or state governments, and reimbursement fails to keep pace with the rising cost of providing care. As a result, costs are shifted to commercial payers, driving up healthcare premiums for all patients.
H.R.1 will exacerbate these ongoing stressors by foreclosing the ability to use state-directed payment in the future as a means to fund community health investments and increased Medicaid payments to hospitals; restricting Medicaid eligibility through frequent redeterminations and work requirements, increasing the volume of uninsured patients, which is anticipated to increase uncompensated care provided by hospitals; and limiting how the provider tax can be leveraged to finance the state’s Medicaid program.
CHA anticipates the federal policy changes will precipitate a drop in Medicaid and marketplace coverage, reduced access to preventive care, and delayed treatment and management of chronic conditions — culminating in more patients waiting until their conditions become so severe that they require intensive, costly treatment in hospital emergency departments, which provide care regardless of ability to pay.
Kidwell underscored the importance of multi-sector partnerships in mitigating the repercussions of H.R.1. on health insurance enrollment, patient access to care in their communities, and overall healthcare affordability. CHA has engaged community organizations and the Connecticut Department of Social Services (DSS) about participating in joint efforts to connect patients with and help patients maintain coverage.
“As people come into the hospital, we have the ability to get information from them to see if they’re eligible for coverage. It’s another opportunity to help people who may be confused about their coverage eligibility or dropped coverage but might be eligible. We can be an access point to try to keep people covered,” Kidwell said.
CHA looks forward to continued conversations with the state about strategies to address the $1.4 billion Medicaid shortfall, including by developing a provider tax program that maximizes federal reimbursement and support for hospitals and their patients.
“We need to understand now how the state is interested in using the program going forward, and we’ll be looking for the legislature to help us navigate a new agreement,” Kidwell said when asked about near-term policy priorities.
Click here for more information on CHA’s advocacy efforts related to federal healthcare cuts.
