HB 7117, An Act Concerning The Recommendations Of The Insurance Fund Working Group

TESTIMONY OF THE CONNECTICUT HOSPITAL ASSOCIATION
SUBMITTED TO THE INSURANCE AND REAL ESTATE COMMITTEE

Thursday, March 6, 2025

The Connecticut Hospital Association (CHA) appreciates this opportunity to submit testimony concerning HB 7117, An Act Concerning The Recommendations Of The Insurance Fund Working Group. CHA supports the legislation and seeks equal treatment of the Office of Health Strategy (OHS) hospital assessments.

Connecticut hospitals and health systems care for patients, strengthen the state’s economy, and support vulnerable communities across the state. Every day, they work to improve healthcare access, affordability, and health equity. Even as they face ongoing challenges, hospitals provide world-class care to everyone who walks through their doors, regardless of their ability to pay. Hospitals also support an exemplary workforce as the largest collective employer in the state, contribute significantly to the state’s economy, and invest in their communities addressing social drivers of health.

Section 2 of HB 7117 would begin a phased transition of funding for OHS from the Insurance Fund to the General Fund. This phased approach would result in a reduced financial assessment on health insurers in the state. CHA supports this change in policy and seeks a similar phased transition for assessments currently made on hospitals to support certain aspects of OHS’s work.

Today, hospitals must pay a quarterly assessment to OHS to support the Health Systems Planning (HSP) unit at OHS. In state fiscal year 2024, that assessment was nearly $6.8 million. To the extent the legislature believes that the work done at OHS represents core functions of the state government, those core functions should be financed in a manner that does not rely on annual assessments.

This year, hospitals will provide $850 million in tax revenue to the state. We believe it is reasonable to identify opportunities to limit state financial assessments on hospitals in other areas, and a phase-out of the HSP assessment is a good example of a current assessment that should be eliminated.

Thank you for your consideration of our position. For additional information, contact CHA Government Relations at (203) 294-7301.