HARTFORD – Today, the Connecticut Hospital Association (CHA) submitted testimony to the Appropriations Committee opposing provisions of Governor Ned Lamont’s proposed FY 2027 budget revisions that would impose $100 million more in taxes on hospitals while making no meaningful investment in patient care. CHA will testify before the Appropriations Committee at today’s public hearing on the governor’s proposal, which begins at 2:00 p.m.
“We oppose the governor’s proposal,” CHA’s testimony states. “The tax program should be used to support patient care at hospitals; the governor’s proposal does not. The tax program should seek to maximize federal funding for Connecticut; the governor’s proposal leaves money on the table. Hospitals that receive tax-funded payments should pay taxes; the governor’s proposal does not require it. Hospitals that want to participate in the tax, like Connecticut Children’s, should be able to; the governor’s proposal prohibits it.”
CHA pointed to the impact of continued inaction to address the nearly $1.5 billion in losses local hospitals face every year because Medicaid pays far less than what it costs hospitals to care for patients covered by Medicaid. This state fiscal year, hospitals will pay $820 million in taxes. Of that amount, the state retains a little more than $500 million for its own purposes and uses approximately $300 million to draw down federal matching dollars to support Medicaid payments to hospitals. Adding to local hospitals’ tax burden, without meaningfully addressing massive shortfalls, forces hospitals to make impossible choices to sustain essential services, and it weakens the state’s healthcare safety net.
CHA also highlighted a better approach to the hospital tax.
“We believe the hospital tax program should maximize federal revenue and ensure that 100% of any increase in the tax is used to improve hospital reimbursement for patient care and begin to address Medicaid underpayment. We believe Connecticut Children’s should participate in the tax program and that Waterbury Hospital should fully participate in the program as a taxpaying hospital, maintaining its current status.”
Read CHA’s testimony here.
Learn more about the impact of the governor’s proposed hospital tax increase here.
