WEEKLY UPDATE: 02/05/26
The Connecticut Hospital Association (CHA) is voicing serious concern about the harmful hospital tax provision in Governor Ned Lamont’s fiscal year (FY) 2027 budget adjustment proposal, which the Office of Policy and Management (OPM) released on opening day of the 2026 Legislative Session.
Connecticut hospitals already pay nearly a billion dollars each year in taxes and lose nearly $1.5 billion annually due to insufficient Medicaid reimbursement. Forcing hospitals to shoulder an additional $100 million in taxes when financial burdens are already enormous — while failing to make a significant investment in patient care — weakens hospitals’ ability to maintain services, support their workforce, and meet the needs of their communities.
“The care Connecticut depends on is at risk under this proposed budget,” said Jennifer Jackson, CEO, CHA. “The result will be fewer resources at the bedside, higher healthcare costs, and a more strained workforce.”
In a joint public statement, members of the CHA Board of Trustees’ Executive Committee, including the CEOs from Griffin Health, Hartford HealthCare, Middlesex Health, Stamford Health, Trinity Health Of New England, and Yale New Haven Health, urged state officials and lawmakers to address chronic Medicaid underpayment.
Click here or visit protectctcare.org for more information on the governor’s proposed tax increase on hospitals.
Disbanding the Office of Health Strategy
The governor’s budget adjustments would also disband the state’s Office of Health Strategy (OHS) and transfer core operations and staff to other departments. OHS oversees many of the state’s healthcare initiatives, including the certificate of need (CON) process and healthcare cost growth benchmarking.
CHA thanked the governor for recognizing the need to improve upon processes tied to the state’s critical healthcare responsibilities. In a statement, CHA shared its appreciation for the proposal to reorganize agency responsibilities, which creates an opportunity for open dialogue and meaningful, constructive reform.
Funding To Study a Government-Run Public Option Health Plan
The governor also proposed using state funds to study the potential development of a public option health plan. CHA raised significant concerns about government-controlled health insurance plans that would restrict enrollees’ access to trusted providers and specialists, while increasing healthcare costs for all patients and threatening the availability of high-quality care in communities across the state. Plans that set limits on what caregivers are paid will only compound financial pressures from chronic Medicaid and Medicare underpayment. Deepening the gap between the cost of care and what is paid for care will result in even greater cost shifts onto employers and privately insured patients.
“It is critically important that families already struggling with affordability and access are not forced to shoulder more,” CHA said. Learn more about public option health plans here.
Click here to read CHA’s full press release on the governor’s proposed budget adjustments.
Related News:
CT Hospitals Respond to Governor Lamont’s Budget, Including Proposed Tax Increase on Hospitals
2026 Legislative Session Commences, Governor Delivers State of the State Address
