SB 1221 Summary

• Implements a settlement agreement in the Connecticut Hospital Association lawsuit by establishing a hospital net revenue tax on inpatient and outpatient services with tiered rates from 6% inpatient and 12.3325% outpatient (2017-2019) declining to 10.4858% outpatient by 2025.

• Requires the Department of Social Services to increase Medicaid rates for nongovernmental licensed short-term general hospitals by 31.65% for inpatient services and 6.5% for outpatient services effective January 1, 2018, with annual 2% increases thereafter through 2026.

• Authorizes supplemental Medicaid payments of $548.3 million annually (fiscal years 2020-2021) and $568.3 million (fiscal years 2022-2026) to nongovernmental hospitals, subject to federal approval.

• Grants the superior court continuing jurisdiction to enforce and modify the settlement agreement and prohibits amendments to the hospital tax or existing tax exemptions for hospitals through June 30, 2026.

• Amends state budget appropriations for fiscal years 2020-2021 to fund hospital payments and establishes new revenue estimates based on the hospital health provider tax modifications.