Conn. hos­pi­tal as­so­ci­a­tion con­tests state provider tax

Modern Healthcare - - REGIONAL NEWS - —Maria Castel­lucci

The Con­necti­cut Hos­pi­tal As­so­ci­a­tion is con­test­ing the state’s provider tax, which taxes 26 not-for-profit Con­necti­cut hos­pi­tals, claim­ing it is un­con­sti­tu­tional and harms hos­pi­tals’ fi­nances. The tax was im­posed to ob­tain ad­di­tional Med­i­caid funds.

The as­so­ci­a­tion filed let­ters with the state’s So­cial Ser­vices and Rev­enue Ser­vices de­part­ments to de­ter­mine whether the provider tax, which went into ef­fect in 2012, is con­sti­tu­tional. The as­so­ci­a­tion claims the hos­pi­tals were told their tax dol­lars would be re­im­bursed and they would re­ceive ad­di­tional fed­eral fund­ing.

But since 2013, the as­so­ci­a­tion claims, those pay­ments have plum­meted and the state is us­ing the money in­stead to bal­ance its bud­get.

The So­cial Ser­vices depart­ment con­tends that the provider tax struc­ture is not strip­ping hos­pi­tals of re­sources, since Med­i­caid pay­ments from the state to the hos­pi­tals in­creased this year to $1.74 bil­lion from $1.66 bil­lion in 2012.

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