State, Hospitals Reach Agreement

December 20, 2019

During a special session Wednesday I voted to approve an agreement between the State of Connecticut and the Connecticut Hospital Association, ending a dispute over tax and Medicaid reimbursement rates that has been hanging over us for the better part of a decade.

The agreement provides immediate financial stability and more certainty in budgeting for our state’s future needs. It also represents a new chapter in the relationship between Connecticut and its hospitals, which serve a critical role in communities throughout the state.

Before the settlement, the state was facing a possible $4 billion liability because of the association’s legal claims.

Thankfully, the seven-year agreement that we now have will provide for Medicaid rate increases of 2 percent for inpatient services in hospitals and 2.2 percent for most other services through 2026.