Connecticut hospitals challenge state's hospital tax, poor Medicaid funding

The Connecticut Hospital Association and hospitals in the state yesterday appealed a recent state administrative decision rejecting their legal challenge to the state’s hospital tax, asking the court to compel the state to end the tax, which they assert was established and implemented in a way that is unconstitutional and violates state and federal law. They also petitioned the Centers for Medicare & Medicaid Services to compel the state to amend its Medicaid State Plan to bring the state’s Medicaid rates and payments, as well as the hospital tax, into compliance with the federal Medicaid Act. “As a result of the hospital tax and poor Medicaid funding, since 2013, there have been 1,390 layoffs and more than 1,700 open positions that have been eliminated at Connecticut hospitals,” CHA said. “Many hospitals have postponed or curtailed plans to make facility improvements and enhance service offerings. Hospitals are actively evaluating the elimination of programs and, in many cases, are also assessing their ability to meet bond covenants.”