H.R.1 requires states to contribute to the cost of SNAP benefits based on SNAP Quality Control (QC) Payment Error Rates (PER) if their SNAP payment error is 6% or above.

If the SNAP PER is:

• 6% to 7.99%, then the state will have to contribute 5%
• 8% to 9.99%, then the state will have to contribute 10%
• 10% or more, the state will have to contribute 15%

The change to state contributions for SNAP Payment Error Rates begins October 1, 2027.

H.R.1 phases down the "safe harbor" level for taxes for most provider types, for states like Connecticut that expanded Medicaid.

Provider taxes will phase down from the current 6% to 3.5% over the five federal fiscal years (FY) as follows:

• 5.5% for FY 2028
• 5% for FY 2029
• 4.5% for FY 2030
• 4% for FY 2031
• 3.5% for FY 2032

The enhanced premium tax credits that provide additional subsidies for members who qualify are pending a decision by Congress on an extension. When additional subsidies sunset, the state will incur increased costs to maintain Covered CT as a no-cost to members program.

The enhanced premium tax credits are scheduled to sunset on December 31, 2025.

There is no impact to benefits for the member as a result of this change.