Lawmakers say they feel betrayed by hospitals appealing rate increases agreed to by the Connecticut Hospital Association and the administration.
Martin Looney and Len Fasano, the Democratic and Republican Senate leaders, issued a statement Wednesday, calling it "a thoroughly disappointing and shocking development."
The administration's budget secretary, Ben Barnes, informed lawmakers that most of the state's acute care hospitals have sent letters to the Department of Social Services, appealing rate increases.
Barnes fears the appeals may hinder Connecticut's pending application for federal reimbursement tied to the rates, "putting the state at risk of significant financial harm."
In their letters, the hospitals say new rates are based on outdated data.
The association insists it didn't renege on the deal and the appeals process is a standard one to protect their rights.
Jennifer Jackson, CEO of CHA issued a statement that said "We remain thankful for the bipartisan legislative support for the agreement regarding taxes from and Medicaid payments to hospitals made during the last legislative session. We didn’t renege on the agreement. We stand by the agreement and, in fact, filed documents with the state, with a copy to CMS, supporting the state plan amendments. In addition to our ongoing commitment to the agreement, we remain committed to working to address the fundamental underlying issues related to the significant Medicaid underfunding in our state. The rate appeals represent hospitals going through a standard process to protect their rights. As context, the agreement benefits the state, hospitals, and the patients they serve. The rate increases and increases in supplemental payments provided for in the agreement were funded by an increased tax on the hospitals.
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