SB 341, An Act Concerning Return Of Health Care Provider Payment

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

Tuesday, March 3, 2026

The Connecticut Hospital Association (CHA) appreciates this opportunity to submit testimony concerning SB 341, An Act Concerning Return Of Health Care Provider Payment.  CHA supports the bill.

Connecticut hospitals make our state stronger by delivering nationally recognized, world-class care, supporting jobs and economic growth, and serving communities across Connecticut.  Every day, hospitals improve access, affordability, and health equity — providing care to all patients regardless of ability to pay.  At the same time, hospitals invest in their workforce and local communities, even as they navigate significant financial and federal challenges.

SB 341 would shorten the period from 18 months to 12 months by which a health insurance company is allowed to cancel, deny, or claw back previously made payments for covered services.  Additionally, the bill would improve the appeals process for payment cancellations, denials, or clawbacks; requiring a health insurance company to determine appeals and notify providers within 15 business days.  These are welcome improvements.   

Hospitals operate on narrow margins and rely on predictable reimbursement for services already rendered.  When insurers recoup payments 12 months or more after a claim is paid, it creates revenue volatility, administrative burden, and financial uncertainty.  By establishing a clear 12-month limit, this bill would improve financial predictability, support responsible budgeting, and reduce costly disputes over aged claims.

Importantly, the bill maintains appropriate safeguards for payers in cases involving fraud or improper billing.  It strikes a fair balance — protecting legitimate oversight while preventing prolonged retroactive clawbacks that destabilize providers.

For these reasons, we believe SB 341 provides thoughtful, balanced reforms that would protect patients, support providers, and strengthen Connecticut’s healthcare delivery system.

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