$375 Million Hospital Tax Increase and Cuts to Healthcare Are Devastating, Still Time To Better Position State for Federal Medicaid Changes
WALLINGFORD — The Connecticut Hospital Association (CHA) released the following statement in response to the biennial budget bill released today by leaders of the Connecticut General Assembly. The budget further increases the Governor’s proposed hospital tax increase – a total hospital tax increase of $375 million – and includes harmful cuts to provider payments proposed by the comptroller.
“The tax increase on hospitals and proposed cuts to healthcare providers contained in this budget will be devastating for hospitals, their workforce, and their patients. This tax increase is far greater than what Governor Lamont proposed earlier this year. It will leave hospitals facing a staggering cut of hundreds of millions of dollars, while the state uses federal dollars to balance its budget without any action to increase Medicaid reimbursement for care provided to patients in hospitals. These policies will move Connecticut backward in our collaborative efforts to make healthcare more affordable and accessible.
“Increasing the provider tax with no positive return for Medicaid reimbursement to hospitals hinders the state’s ability to maximize federal funds to support Medicaid. On top of this newly inflated tax increase, the comptroller’s plan to reduce payments to hospitals for services provided to state employees and non-Medicare eligible state retirees would further harm healthcare providers at a time when they are facing ongoing challenges and future uncertainty.
“There is still time to amend the budget to best prepare the state for any federal changes on the horizon. We have been in talks with the state on the urgent need to maximize federal Medicaid funding should the federal government pull back on its commitment to the program. Protective measures, developed in partnership with hospitals and the state, should move forward as part of the budget. The timing is critical to act now.”
