HB 5540, An Act Concerning The Mitigation Of Benefits Cliffs

TESTIMONY OF THE CONNECTICUT HOSPITAL ASSOCIATION
SUBMITTED TO THE HUMAN SERVICES COMMITTEE

Tuesday, March 17, 2026

The Connecticut Hospital Association (CHA) appreciates this opportunity to submit testimony concerning HB 5540, An Act Concerning The Mitigation Of Benefits Cliffs.  CHA supports the bill.

Connecticut hospitals make our state stronger by delivering nationally recognized, world-class care, supporting jobs and economic growth, and serving communities across Connecticut.  Every day, hospitals improve access, affordability, and health equity — providing care to all patients regardless of ability to pay.  At the same time, hospitals invest in their workforce and local communities, even as they navigate significant financial and federal challenges.

Economic stability is closely linked to health.  When families experience small increases in income, they may abruptly lose public assistance due to temporary ineligibility under the Temporary Assistance for Needy Families (TANF) program — a phenomenon known as a “benefits cliff.”  When this occurs, families may find themselves financially worse off despite working more or earning higher wages.  These sudden losses of food, housing, or childcare assistance can create stress and instability that negatively affect physical and mental health and can make it harder for families to maintain employment.

HB 5540 takes a crucial step toward addressing this challenge by establishing transitional Temporary Family Assistance benefits that phase down gradually as families’ earnings increase, helping households maintain stability while progressing toward economic independence. The bill also proposes a benefits cliff mitigation pilot program, connects families to workforce development services, and ensures that transitional benefits do not inadvertently jeopardize eligibility for other essential supports such as Supplemental Nutritional Assistance Program (SNAP) benefits.

Hospitals support policies that address the social and economic factors that influence health.  By helping families maintain stability as their income grows, HB 5540 supports workforce participation, reduces financial stress, and promotes healthier communities.  Policies that strengthen economic security can improve health outcomes and reduce preventable strain on the healthcare system.

Thank you for your consideration of our position.  For additional information, contact CHA Government Relations at (203) 294-7301.