SB 499, An Act Concerning Medicaid Rate Increases HB 5561, An Act Concerning Medicaid Rate Increases For Certain Providers

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

Tuesday, March 17, 2026

The Connecticut Hospital Association (CHA) appreciates this opportunity to submit testimony concerning SB 499, An Act Concerning Medicaid Rate Increases and HB 5561, An Act Concerning Medicaid Rate Increases For Certain Providers.  CHA supports the bills.

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 499

CHA supports SB 499’s intent to address the longstanding underfunding of Connecticut’s Medicaid program and appreciates that the bill moves beyond one-time or partial adjustments by establishing a phased path to higher reimbursement, annual updates beginning in 2029, and an ongoing review process tied to provider access and rate adequacy.  Section 1 of SB 499 would require the commissioner of social services, within available appropriations, to phase in rate increases in accordance with the state’s Medicaid rate study (commissioned by the Department of Social Services pursuant to Section 1 of PA 23-186) so that by June 30, 2029, rates reach at least 75% of Medicare or an equivalent five-state benchmark and then continue to be updated annually.  Section 2 of SB 499 would require the Council on Medical Assistance Program Oversight to conduct an ongoing systemic review and annually recommend appropriations needed to sustain those reimbursement levels.

CHA has consistently testified that Connecticut’s chronic underinvestment in Medicaid creates barriers to care for beneficiaries, deprives providers of resources needed to recruit and retain staff and invest in quality, and shifts costs onto the commercial market.  CHA therefore appreciates the bill’s recognition that Medicaid reimbursement must be reviewed and updated on an ongoing basis.  As the bill advances, it will be important to ensure that hospital services are clearly and adequately included and that sufficient appropriations are provided so that the rate increases contemplated by the bill can be fully implemented.

HB 5561

CHA also appreciates several targeted Medicaid reimbursement provisions in HB 5561 that would help address access challenges and longstanding underpayment affecting certain services provided in the continuum of hospital care.  Section 11 of the bill would increase Medicaid reimbursement for Gaylord Specialty Care by $206 per patient per day to achieve parity with other long-term acute care hospitals.  CHA supports this adjustment, which recognizes the specialized role these facilities play in treating patients with complex medical conditions and the importance of ensuring that reimbursement more accurately reflects the cost of providing this level of care.

CHA also supports Section 8 of HB 5561, which would increase Medicaid reimbursement rates for emergency room physicians and psychologists.  Hospitals are directly affected by Medicaid underpayment for emergency department physician services because many hospitals either employ emergency physicians or contract with physician groups whose services must be financially supported when Medicaid reimbursement falls short of the cost of care.  Increasing Medicaid reimbursement for emergency department physicians can therefore support patient care and hospitals by helping to stabilize funding for the emergency care workforce and support the ability of hospitals to maintain continuous access to emergency services.

Similarly, psychologists frequently practice within hospital-affiliated medical groups and integrated behavioral health programs.  Increasing Medicaid reimbursement for these services can help improve access to behavioral healthcare, which remains a chronic and pervasive challenge across Connecticut and often contributes to emergency department utilization and delays in appropriate treatment settings.

Finally, CHA appreciates HB 5561’s attention to Medicaid reimbursement for doulas.  Connecticut hospitals have worked in partnership with doulas and community organizations to expand doula participation in maternity care and labor and delivery settings as part of broader efforts to improve maternal health outcomes and patient experience.  Ensuring adequate reimbursement for doula services is an important step in supporting these efforts and helping to expand access to culturally responsive maternal care services for patients across the state.

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