SB 1419, An Act Prohibiting Medicaid Reimbursement For Health Care Providers Who Include Training Repayment Provisions In Contracts With Employees

TESTIMONY OF THE CONNECTICUT HOSPITAL ASSOCIATION
SUBMITTED TO THE HUMAN SERVICES COMMITTEE

Thursday, March 6, 2025

The Connecticut Hospital Association (CHA) appreciates this opportunity to submit testimony concerning SB 1419, An Act Prohibiting Medicaid Reimbursement For Health Care Providers Who Include Training Repayment Provisions In Contracts With Employees. CHA opposes the bill as drafted.

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.

SB 1419 would prohibit a “training repayment agreement provision” from being included in a contract or employment agreement between a healthcare provider and an employee. A training repayment agreement provision is defined as an agreement between a healthcare provider and employee in which the employee is required to provide an employment promissory note, as defined in Connecticut General Statutes Section 31-51r.

We are concerned that, as drafted, SB 1419 will result in healthcare employers no longer being able to help finance the cost of continuing education for employees. For nearly 40 years, Connecticut law at 31-51r has worked for both employees and employers, ensuring that employees are not required to sign employment promissory notes while making clear that certain exceptions, like monetary advances to employees for things like education expenses, continue to be permissible.

While we are unclear about why SB 1419 is needed, if it should advance, we encourage the committee to make it clear that the exceptions outlined in 31-51r(c) are included in the legislation. We do not want an unintended consequence of this legislation to be that healthcare employers are no longer able to assist their employees with the cost of continuing education — nursing school, for example.

We are opposed to using eligibility for Medicaid reimbursement as a compliance mechanism, as the punishment would not only harm healthcare providers but also the low-income patients they serve. Given that Medicaid reimburses providers at below the cost of care today, it is not in the best interest of the state to advance policy that could further incent providers not to serve Medicaid patients.

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