Speaking Out Against Harmful Budget Proposals

Connecticut hospitals and health systems continue to speak out against harmful proposals contained in Governor Ned Lamont’s Fiscal Year 2026/2027 biennial state budget, including policies that would result in an increase in the amount hospitals pay in taxes and a reduction in payments to hospitals by hundreds of millions of dollars.

The governor’s proposals are short-sighted – CHA Senior Vice President, Policy Paul Kidwell explained in a Connecticut Inside Investigator report – focusing only on the year following the settlement expiration, rather than formulating a long-term vision and strategic approach.

Kidwell also echoed hospitals’ calls for collaboration and statewide efforts to reform Medicaid to better meet the needs of patients and communities.

“The governor said during his speech that if you’ve got a better idea, come talk to me about it,” Kidwell said. “We think we’ve got a better idea, let’s talk about it.”

On Tuesday, February 18 the Insurance and Real Estate Committee held a public hearing on the governor’s proposal to cap out-of-network rates for inpatient and outpatient services (HB 6871, An Act Limiting Out-Of-Network Health Care Costs).  Mark Schaefer, Vice President, System Innovation and Financing, CHA testified against the proposal.  Watch the hearing testimony here.

The Appropriations Committee has also begun holding public hearings on the various sections of the Governor’s budget (HB 6864, An Act Concerning The State Budget For The Biennium Ending June 30, 2027, And Making Appropriations Therefor). This includes a hearing today on multiple proposals including a policy to reduce hospital payments under the state employee health plan, and a hearing tomorrow on policies related to the Office of Health Strategy (OHS), including hiring additional OHS staff to enforce the governor’s proposal to cap out-of-network payment for hospital inpatient and outpatient services.

Connecticut hospitals will continue providing testimony detailing the negative impact of these proposals on hospitals and the patients and communities they serve and advocating for a better approach to address pressures on hospitals, patients, and the healthcare workforce.

Learn more about the harmful proposals contained in the governor’s budget here.

Read CHA’s testimony opposing capping out-of-network rates for inpatient and outpatient services here.

Read CHA’s testimony opposing proposed reductions in hospital payments under the state employee health plan here.

Learn more about Connecticut hospitals’ ideas to redesign Medicaid to invest in local communities here.