Senate Bill No. 1301 aims to amend the Medicaid reimbursement rates for community hospitals located in rural areas of Connecticut. The bill defines a "community hospital in a rural area" as a nonfederal acute care hospital that is designated by the Connecticut State Office of Rural Health, is open to the public, and is situated in a non-metropolitan area as defined by federal agencies. The key provision of the bill mandates that the Commissioner of Social Services must adjust the Medicaid state plan to increase reimbursement rates for these rural hospitals to match the Medicare rates for the same services provided at those facilities.

The bill is set to take effect on July 1, 2025, and includes a fiscal impact statement indicating that the Department of Social Services will incur costs associated with the required rate increases for specific hospitals, including Charlotte Hungerford, Day Kimball, Sharon, and Windham. The exact cost of these increases is currently unknown, but it is expected to continue annually, subject to inflation. Additionally, the bill clarifies the reference to the "United States Census Bureau" for clarity in the legal language.