Researcher: MF Page 1 3/19/25
OLR Bill Analysis
sSB 1358
AN ACT CONCERNING EQUITABLE COMPENSATION FOR STATE -
CONTRACTED NONPROFIT HUMAN SERVICES PROVIDERS.
SUMMARY
This bill establishes annual inflationary increases for rates paid to
nonprofit human services providers that contract with the state. It also
requires the Office of Policy and Management (OPM) to report every
three years on appropriations needed to make these increases. Under
the bill, a nonprofit human services provider includes nonprofit
organizations that perform (1) services for people with physical,
intellectual, or developmental disabilities (including autism spectrum
disorder) or (2) behavioral health services.
Specifically, the bill requires any state agency contracting with a
nonprofit human services provider to annually increase rates by July 1
for recurring contracts by the percentage increase in the consumer price
index (CPI) for all urban consumers in the northeast region in the
previous calendar year (a measure of inflation). The requirement applies
to contracts with any state board, authority, commission, department,
office, institution, council, or other agency of the state, including higher
education institutions. It prohibits state agencies from decreasing rates
if the CPI decreases.
The bill similarly requires the Department of Social Services (DSS)
commissioner to adjust Medicaid rates annually on July 1 for nonprofit
human services providers contracting with DSS. The increase is the
same percentage increase, if any, for state agency contracts described
above. DSS must make the adjustment unless federal Medicaid laws do
not allow it.
EFFECTIVE DATE: Upon passage
2025SB-01358-R000134-BA.DOCX
Researcher: MF Page 2 3/19/25
OPM REPORT
The bill requires OPM to report every three years, starting by January
1, 2026, to the Appropriations, Human Services, and Public Health
committees on state agency contracts with nonprofit human services
providers. The bill requires the report to include any appropriations
needed to ensure that rates for the contracts in future fiscal years include
any increase in the CPI for all urban consumers in the northeast region
in the previous calendar year.
COMMITTEE ACTION
Human Services Committee
Joint Favorable Substitute
Yea 16 Nay 6 (03/04/2025)