WEEKLY UPDATE: 01/30/25

Capitol Update: Legislation Affecting Hospitals and Healthcare


With the legislative session underway, lawmakers and state leaders have held multiple press conferences in recent days to highlight their legislative priorities.

Legislation to Enhance Healthcare Access

The Connecticut Senate Democratic Caucus has identified two bills to address and increase healthcare accessibility as priority proposals.

SB 10, An Act Concerning Health Insurance and Patient Protection, focuses on curbing certain insurance practices impacting access to care, and SB 11, An Act Concerning Prescription Drug Access and Affordability, focuses on prescription drug affordability.

According to the bill’s sponsors, SB 10 seeks to enforce mental health parity laws, prohibit automatic downcoding by insurance companies that results in insurance paying less than the cost of services provided, and restrict insurance companies’ use of step therapy, which can delay treatment for patients.  SB 11 is intended to be a broad bill that will encompass multiple proposals to remove barriers to prescription drugs and address rising costs, including exploring tools such as drug importation and state-level pricing negotiations.  Both bills are in the process of being drafted.

Hospitals and health systems have long advocated for policies that ensure patients can rely on their health insurance plans to facilitate covered, medically necessary healthcare services when they need them, without delays or inappropriate denials, and to ensure clinicians can focus on providing care without facing burdensome obstacles.  These proposals focus on keeping healthcare decisions in the hands of patients and providers rather than insurance companies.

Hospitals also welcome efforts to address the rising costs of prescription drugs.  In one year, Connecticut hospitals saw drug expenses climb by 10%, exceeding national and regional growth rates.  These pressures are being felt by patients every day and put significant strain on healthcare delivery and family budgets.

The Senate Democratic Caucus’s press release related to the proposals can be found here.  Watch their press conference announcing the proposals here.

Legislation To Increase Oversight and Ownership of Hospitals, Health Systems, and Medical Practices

On Thursday, January 23, Governor Ned Lamont, Attorney General William Tong, and Office of Health Strategy (OHS) Commissioner Deidre Gifford were joined by leaders of the General Assembly’s Public Health Committee to announce legislative proposals related to the oversight of the ownership and management of Connecticut hospitals, health systems, and medical practices.

According to the governor’s announcement, the bill that will be filed in the coming days will propose policies to establish expanded review and evaluation of hospital transactions by the Office of the Attorney General and OHS.

“We look forward to reviewing the details of the proposals outlined at today’s press conference and working in partnership with the Governor, the Attorney General, the Office of Health Strategy, and lawmakers,” the Connecticut Hospital Association (CHA) wrote in a statement responding to the proposal announcement.  “We all have a shared goal of ensuring a stable healthcare system, addressing the financial challenges that strain hospitals, and protecting access to care for every patient and community.”

The governor’s press release related to the proposed bill can be found here.

CHA staff continue to monitor these and other legislative proposals for their impact on Connecticut providers, patients, and communities.