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February 22, 2022 HB 22-1247
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Fiscal Note
Drafting Number:
Prime Sponsors:
LLS 22-0850
Rep. Herod; McCluskie
Sen. Hansen; Rankin
Date:
Bill Status:
Fiscal Analyst:
February 22, 2022
House HHS
Erin Reynolds | 303-866-4146
Erin.Reynolds@state.co.us
Bill Topic: ADDITIONAL REQUIREMENTS FOR NURSING FACILITY FUNDING
Summary of
Fiscal Impact:
☐ State Revenue
☒ State Expenditure
☐ State Transfer
☐ TABOR Refund
☐ Local Government
☐ Statutory Public Entity
The bill appropriates funding to enhance Medicaid payments to nursing facilities to
support short-term solvency. It increases state expenditures in the current FY 2021-22
and FY 2022-23 only.
Appropriation
Summary:
For the current FY 2021-22, the bill includes an appropriation of $27,001,000 to the
Department of Health Care Policy and Financing.
Fiscal Note
Status:
The fiscal note reflects the introduced bill, which was recommended by the
Joint Budget Committee.
Table 1
State Fiscal Impacts Under HB 22-1247
Current Year
FY 2021-22
Budget Year
FY 2022-23
Out Year
FY 2023-24
Revenue
- - -
Expenditures General Fund $17,000,500 - -
Federal Funds $10,000,500 - -
Total Expenditures $27,001,000 - -
Transfers - - -
Other Budget Impacts General Fund Reserve $2,278,067 - -
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February 22, 2022 HB 22-1247
Summary of Legislation
The bill directs the Department of Health Care Policy and Financing to make supplemental payments
across all Medicaid-certified Class I nursing facilities in the current FY 2021-22.
The department is also required to:
establish reporting and result tracking requirements necessary to administer additional
supplemental funding;
pursue federal matching funds to reduce the state share of costs; and
engage with the stakeholders outlined in the bill to produce a report regarding suggestions for
permanently changing the Medicaid nursing facility provider reimbursement policy in Colorado,
due to the legislature by November 1, 2022.
The department may promulgate rules as necessary for implementation of the payments and their
supporting requirements. Provisions regarding supplemental payments repeal July 1, 2023.
State Expenditures
The bill increases state expenditures in the Department of Health Care Policy and Financing by an
estimated $27 million in FY 2021-22, with roll-forward spending authority through FY 2022-23.
Funding will be distributed to nursing facilities to support their short-term solvency. Workload will
also increase for the department to report recommendations; this work is already underway.
Other Budget Impacts
General Fund reserve. Under current law, an amount equal to 13.4 percent of General Fund
appropriations must be set aside in the General Fund statutory reserve in FY 2021-22. Based on this
fiscal note, the bill is expected to increase the amount of General Fund held in reserve by $2,278,067
in FY 2021-22, which will decrease the amount of General Fund available for other purposes.
Effective Date
The bill takes effect upon signature of the Governor, or upon becoming law without his signature.
State Appropriations
For the current FY 2021-22, the bill includes an appropriation of $17,000,500 General Fund and
$10,000,500 federal funds to the Department of Health Care Policy and Financing. This appropriation
may be spent through FY 2022-23.
State and Local Government Contacts
Health Care Policy and Financing Joint Budget Committee
The revenue and expenditure impacts in this fiscal note represent changes from current law under the bill for each
fiscal year. For additional information about fiscal notes, please visit: leg.colorado.gov/fiscalnotes.