Connecticut House Bill HB06364

Connecticut 2017 Regular Session

• Introduced: 1/23/17
• Refer: 1/23/17

Caption

An Act To Phase Out The Hospital Tax Over Five Years.

Impact

The proposed phase-out of the hospital tax is expected to have significant implications for hospital finance and overall healthcare funding in the state. Supporters of the bill argue that it will foster a more favorable environment for hospitals, encouraging expansions, investments, and potentially better healthcare outcomes for residents. However, they also highlight the fiscal responsibility that needs to accompany such maneuvers, emphasizing the importance of sustainable financial practices within the healthcare system.

Summary

House Bill 6364 seeks to phase out the hospital tax over a period of five years, starting from July 1, 2017. This measure is introduced by Representative McGorty, representing the 122nd District, with the intention of easing the tax burden on hospitals within the state. By gradually reducing this tax, the bill aims to provide financial relief to these institutions, potentially improving their financial stability and allowing them to allocate more resources towards patient care and operational improvements.

Contention

There may be notable points of contention regarding the funding mechanisms that will replace the revenue lost due to the phase-out of the hospital tax. Critics of the bill could express concerns over the potential shortfall in state revenue, warning that the reduction in taxes could lead to budgetary challenges for healthcare programs reliant on public funding. Additionally, questions may arise about the implications for other elements of healthcare financing in the state, possibly leading to debates over equity and access to essential services.