CT Hospital Association testifies against changes to hospital tax

Connecticut Inside Investigator – Monday, February 23, 2026
By Alex Appel

The Connecticut Hospital Association (CHA) is asking the state’s Appropriations Committee to change Gov. Ned Lamont’s proposed changes to the hospital tax. On Feb. 18, representatives of the organization submitted written testimony, asking the Committee to reject any tax increases that don’t directly benefit hospital systems.

This year, hospitals that participate in the hospital tax program will pay a combined $820 million a year in taxes, according to the CHA. Of that $820 million, $300 million is used to help with Medicaid payments, and around $500 million is used by the state for other purposes.

Lamont’s proposed budget would increase the total amount of money hospitals are taxed by $100 million. One of the biggest problems the CHA has with the proposed tax is not the increase itself, but most of that money will not return to hospitals through supplemental payments, Paul Kidwell, CHA’s vice president of policy, said in an interview with Inside Investigator.

In the proposed budget, the increase in tax revenue will be split as follows: $54 million of the tax increase will go toward the state, and $40 million will be used for supplemental payments to hospitals.

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