Connecticut is a state to watch on healthcare cost and competition. Connecticut Attorney General George Jepsen has been particularly active in the past years in promoting fairness and transparency in healthcare pricing, as well as in promoting greater enforcement of provider consolidation. The Connecticut Antitrust Act contains provisions under which (often in addition to federal statutes) the state or private persons may bring claims. In addition, Connecticut has a robust process for requiring and evaluating requests for certificates of need. The state’s Certificate of Need Program is detailed on the department of health’s website.
In 2018, Connecticut was active in introducing legislation aimed at controlling pharmaceutical costs. The legislature passed HB 5384, which requires pharmaceutical companies to disclose and explain prescription drug price hikes. Drug makers must justify any pharmaceutical price that jumps 20 percent or more during a calendar year, insurers must report large drug cost increases when filing rate requests, and PBMs must report how much they collect in rebates and how much they keep. Additionally, the state passed SB 197, which adds biological products to existing laws regarding substitution of generic drugs.
The State Database
The Source tracks state activities impacting healthcare price and competition in both legislation and litigation in a searchable database to help stakeholders at the state level understand their legal and regulatory environment as they make efforts to improve access, quality, and efficiency, and reduce costs in healthcare. We currently cover bills from the 2017-2018 legislative term and key statutes from each state. Search the database for specific bills, statutes or cases by using keyword, key issue category, and/or jurisdiction.
LEGISLATIVE CALENDARConnecticut’s 2018 legislative term convened from 2/6/2018 – 5/6/2018. Connecticut’s next legislative session will convene in 2019.
2018 – 2019 BUDGETConnecticut enacts budgets on a two-year cycle, beginning July 1 of each odd-numbered year. Connecticut’s new Biennial Budget will take effect on July 1, 2017 and is valid through June 30, 2019. Connecticut has not enacted its 2018-2019 budget. To view Connecticut’s most recent 2018-2019 Budget proposal, click here.
REGULATION & ENFORCEMENT
- Connecticut was one of 16 states to file an amicus brief supporting the FTC’s winning position in the Ninth Circuit appeal of St. Luke’s Health Care Sys. v. FTC, No. 14-35173 (March 7, 2014), decided February 10, 2015. The States’ brief stated that the acceleration of health care costs due to the growth of large health care provider systems had become a matter of grave concern for the states.
- In June 2012, AG Jepsen, in coordination with the FTC, declined to challenge the proposed merger of Yale-New Haven Hospital and The Hospital of Saint Raphael. The enforcement entities apparently based their decision, in part, on St. Raphael’s precarious financial condition at the time of the deal.
- In 2014, Connecticut AG George Jepsen was active in attempting to control rising healthcare costs by monitoring provider consolidation and increasing price transparency. In April, the Connecticut AGO issued a report on these issues. Most recently, in December 2014, the AG approved a provider joint venture between Waterbury Hospital and Vanguard (a subsidiary of Tenet), subjecting the proposed deal to several conditions.
- On Feb. 25, 2016, Connecticut’s governor issued an executive order demanding a review of the state’s certificate of needs process, and suspending the approval of hospital mergers until January 2017.
- Connecticut’s Dept of Insurance will take a major role in reviewing the proposed Anthem-Cigna merger, alongside the AG’s office there. Ins Commissioner Katherine Wade’s former ties to Cigna and her husband’s position in-house counsel position there have raised questions of bias.