Governor Dannel Malloy must sign or veto the plan by no later than Wednesday, and as Davis reported, the governor sees some real issues with the plan.
“I don’t think he’s talking about this just to be a pain in the neck,” Davis said.
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Davis cited this statement from Ben Barnes, the Secretary for the Office of Policy and Management for Governor Malloy:
“The hospital language included in the budget makes the center for Medicare and Medicaid services’ approval of the tax and supplemental payments extremely unlikely. As a result, the state would face hundreds of millions in penalties from CMS, hundreds of millions in lost revenue from the hospitals, and then be on the hook for funding the hundreds of millions in lost payments.”
“This is a very big problem,” Davis said.
State leaders would have to fix the problem by Wednesday.
Watch the video above for more analysis.