Connecticut Hospitals Fight for Fair Tax

0:00It's April 8th. This is Hartford News today, powered by AI. Connecticut hospitals got hit hard by a state provider tax meant to pull in federal Medicaid cash, but it ended up draining over $1.6 billion dollars from the industry over the years. Officials settled a lawsuit with a seven year fix back in 2019, but that deal expires June 30th, leaving everyone scrambling for a new plan. The tax was supposed to be a loop. State taxes hospitals, claims it as spending to snack extra federal dollars, then kicks some back. But budget walls grew the tax and shrank hospital shares, turning a win into a wipe-out for them while the state pocketed nearly $3.3 billion. Hospital leaders like Paul Kidwell from the Connecticut Hospital Association are pushing for a five year lock-in on fair taxes and payments, saying it, beats the uncertainty. Meanwhile, Governor Ned Lamont's team, led by budget chief Josh Welchkick, points to

1:00massive federal Medicaid cuts coming next fiscal year, hundreds of. Millions and wants to play it year by year. Lamont's pitching a $100 million tax hike on hospitals, but with $140 million back in payments, netting them $40 million. Extra. Still, hospitals say it's not enough against their razor-thin margins, just 0.2% last year, and a 1.5 billion annual. Medicaid shortfall, all while federal support shrinks further. Lawmakers on both sides of the aisle, like Rep Maria Horn and Sen Cathy Austin, are eyeing a compromise before session ends. People needs with state fiscal tightrope to keep facilities viable long-term.