Rep. Carter: Greater Access to Care, Not More Taxes

HARTFORD – State Rep. Dan Carter (R- Bethel, Danbury, Newtown & Redding) stood up late Thursday night in the House Chamber to voice his opposition to further taxing Connecticut’s hospitals in order to balance the state budget.

The majority party, proponent of the “tax package,” also proposed a bill this legislative session to raise taxes on hospitals, after an increase took place as recently as 2011. The bill, H.B. 6965, was brought to the House Floor on May 14, 2015. At that point in time, the bill intends to begin taxing hospitals on property purchased years ago in an attempt to stay competitive and thriving under the Affordable Health Care Act of 2009.

“My colleagues and I felt that this bill, if passed, would unfairly change the rules on hospitals,” said Rep. Carter. “There was no tax imposed at the time of purchase; why would we tax them retroactively? This was a question asked on both sides of the chamber.”

The bill was “passed temporarily” – removed from active floor debate – before being brought back up for debate, as amended, on May 21, 2015. The amendment said that instead of taxing hospitals on previous purchases, all purchases made on or after October 1, 2015 would be taxed.

“This amendment certainly improves the bill, but it is still a tax on hospitals,” Rep. Carter said. It will also tax expensive diagnostic equipment needed to provide quality health care services, such as MRI machines – a piece of personal property that may not even be on the main campus. Specialized equipment is an investment that benefits the state, not only our constituents. In addition, this bill requires colleges to begin paying property taxes on residential properties with 20 beds or fewer for students.”

“The real problem with this bill,” Rep. Carter added, “is that it discourages hospitals from expanding their network of services into the community. Health care authorities might hesitate – even years past what’s appropriate – to purchase the latest and greatest technologies, facilities or practices. This concerns me, especially in regards to the negative impact it will have on Danbury Hospital and the Western Connecticut Health Care Network.

“We don’t all have hospitals in our districts, but we all have patients and medical professionals. We need to find a way to put more access to care into our community to support them, and to support our aging population. This bill will not allow hospitals to grow, and will inhibit access to care. It is not our intent to turn hospitals into for-profit business entities that have to think about their ‘business models.’ Therefore, I could not support it.”

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Submitted by Newtown, CT

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