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Hospital leaders push back on revenue-neutrality clause and data limits in insurer oversight bill
Summary
Hartford HealthCare urged changes to HB 7116's revenue-neutrality restriction and asked for a more thorough evaluation of the state's health-care cost-growth benchmark, saying current data and analysis are insufficient to identify spending drivers.
Hospital leaders told the Insurance and Real Estate Committee they support transparency but asked lawmakers to reconsider two provisions of HB 7116: a prohibition on unilateral contract changes that would alter negotiated revenue (a "revenue-neutrality" clause) and a proposal to audit the state's cost-growth benchmark without clearer data on drivers of spending.
Dr. James Carden, senior adviser at Hartford HealthCare, said the revenue-neutrality language risks financial instability for providers if commercial payers change policies that have substantial financial impact mid-contract. "These changes should and do occur during negotiations," he told the committee, "and we feel they're at the appropriate place, not in the interceding segment."
Cost-growth benchmark concerns
Carden also urged a careful review of Connecticut's health-care cost-growth benchmark (developed under Governor's Executive Order 5), saying the state lacks sufficient data and causal analysis to identify key contributors to spending growth. He warned the benchmark blends gross state product and median income but does not adequately reflect rising costs of labor, supplies and pharmaceuticals or the complexity of care that drives spending.
Committee discussion
Lawmakers said they welcome hospital input and further technical work on the revenue-neutrality and benchmark language before advancing the bill. No committee action occurred at the hearing.
