Second Regular Session Seventy-third General Assembly STATE OF COLORADO ENGROSSED This Version Includes All Amendments Adopted on Second Reading in the House of Introduction LLS NO. 22-0815.01 Shelby Ross x4510 HOUSE BILL 22-1302 House Committees Senate Committees Public & Behavioral Health & Human Services Appropriations A BILL FOR AN ACT C ONCERNING HEALTH-CARE PRACTICE TRANSFORMATION TO SUPPORT101 WHOLE-PERSON HEALTH THROUGH INTEGRATED CARE MODELS ,102 AND, IN CONNECTION THEREWITH , MAKING AN APPROPRIATION .103 Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov/ .) The bill creates the primary care and behavioral health statewide integration grant program in the department of health care policy and financing to provide grants to primary care clinics for implementation of evidence-based clinical integration care models. The bill requires the department of health care policy and HOUSE Amended 2nd Reading April 8, 2022 HOUSE SPONSORSHIP Kennedy and Will, Amabile, Gonzales-Gutierrez, Michaelson Jenet SENATE SPONSORSHIP Jaquez Lewis and Priola, Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment. Capital letters or bold & italic numbers indicate new material to be added to existing statute. Dashes through the words indicate deletions from existing statute. financing, in collaboration with the behavioral health administration and other agencies, to develop a universal contract for behavioral health services. The bill makes an appropriation. Be it enacted by the General Assembly of the State of Colorado:1 SECTION 1. Legislative declaration. (1) The general assembly2 finds and declares that:3 (a) Since the COVID-19 pandemic began, rates of psychological4 distress, including anxiety, depression, and other behavioral and mental5 health disorders, among them substance use disorders, have increased;6 (b) From 2015 to 2019, Colorado's state innovation model used7 federal grant funding to support 344 primary care practices and four8 community mental health centers to integrate behavioral and physical9 health care, build a network of regional health connectors that links10 practices with community resources, and advance the development of11 value-based payment structures;12 (c) A federal evaluation showed that Colorado's practice13 transformation program was associated with greater access to behavioral14 health care and fewer behavioral-health-related emergency visits;15 (d) Efforts to continue the progress of the state innovation model16 have continued, but too few Coloradans have access to behavioral health17 services, and even fewer have access to these services in their primary18 care provider's office;19 (e) The federal government enacted the "American Rescue Plan20 Act of 2021" (ARPA), Pub.L. 117-2, to provide support to state, local,21 and tribal governments in responding to the impact of the COVID-1922 pandemic; and23 1302-2- (f) Regulations construing ARPA promulgated by the federal1 department of treasury identify a nonexclusive list of uses for the2 COVID-19 pandemic and its negative public health impacts.3 (2) Therefore, the general assembly declares that:4 (a) Investments in practice transformation, including behavioral5 health integration, will increase access to behavioral health-care services6 for Coloradans struggling due to the public health emergency; and7 (b) The programs and services funded by the federal money in this8 act are important government services and appropriate uses of the money9 transferred to Colorado under ARPA.10 SECTION 2. In Colorado Revised Statutes, add 25.5-5-332 as11 follows:12 25.5-5-332. Primary care and behavioral health statewide13 integration grant program - creation - report - definition - repeal.14 (1) A S USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE15 REQUIRES, "GRANT PROGRAM " MEANS THE PRIMARY CARE AND16 BEHAVIORAL HEALTH STATEWIDE INTEGRATION GRANT PROGRAM17 CREATED IN SUBSECTION (2) OF THIS SECTION.18 (2) T HERE IS CREATED IN THE STATE DEPARTMENT THE PRIMARY19 CARE AND BEHAVIORAL HEALTH STATEWIDE INTEGRATION GRANT20 PROGRAM TO PROVIDE GRANTS TO PHYSICAL AND BEHAVIORAL HEALTH21 CARE PROVIDERS FOR IMPLEMENTATION OF EVIDENCE -BASED CLINICAL22 INTEGRATION CARE MODELS, AS DEFINED BY THE STATE DEPARTMENT , IN23 COLLABORATION WITH THE BEHAVIORAL HEALTH ADMINISTRATION IN THE24 DEPARTMENT OF HUMAN SERVICES .25 (3) (a) G RANT RECIPIENTS MAY USE THE MONEY RECEIVED26 THROUGH THE GRANT PROGRAM FOR THE FOLLOWING PURPOSES :27 1302 -3- (I) DEVELOPING INFRASTRUCTURE FOR PRIMARY CARE , PEDIATRIC,1 AND BEHAVIORAL HEALTH -CARE PROVIDERS TO BETTER SERVE2 INDIVIDUALS WITH BEHAVIORAL HEALTH NEEDS IN OUTPATIENT HEALTH3 CARE SETTINGS;4 (II) I NCREASING ACCESS TO QUALITY HEALTH CARE FOR5 INDIVIDUALS WITH BEHAVIORAL HEALTH NEEDS ;6 (III) I NVESTING IN EARLY INTERVENTIONS FOR CHILDREN , YOUTH,7 AND ADULTS THAT REDUCE ESCALATION AND EXACERBATION OF8 BEHAVIORAL HEALTH CONDITIONS ;9 (IV) A DDRESSING THE NEED TO EXPAND THE BEHAVIORAL10 HEALTH-CARE WORKFORCE; AND11 (V) D EVELOPING AND IMPLEMENTING ALTERNATIVE PAYMENT12 MODELS, INCLUDING THE DEVELOPMENT OF PROTOCOLS , PROCESSES, WORK13 FLOW, AND PARTNERSHIPS.14 (b) A NY MONEY RECEIVED THROUGH THE GRANT PROGRAM MUST15 SUPPLEMENT AND NOT SUPPLANT EXISTING HEALTH -CARE SERVICES.16 G RANT RECIPIENTS SHALL NOT USE MONEY RECEIVED THROUGH THE17 GRANT PROGRAM FOR:18 (I) O NGOING OR EXISTING EXECUTIVE AND SENIOR STAFF19 SALARIES;20 (II) S ERVICES ALREADY COVERED BY MEDICAID OR A CLIENT 'S21 INSURANCE; OR22 (III) O NGOING OR EXISTING ELECTRONIC HEALTH RECORDS COSTS .23 (c) (I) (A) IF A GRANT RECIPIENT IS A HOSPITAL -OWNED OR24 HOSPITAL-AFFILIATED PRACTICE THAT IS NOT PART OF A HOSPITAL SYSTEM25 AND HAS LESS THAN TEN PERCENT TOTAL PROFIT AS MEASURED BY STATE26 DEPARTMENT TRANSPARENCY REPORTING , THE GRANT RECIPIENT SHALL27 1302 -4- PROVIDE A TWENTY-FIVE PERCENT MATCH FOR THE AWARDED AMOUNT .1 T HE GRANT RECIPIENT MAY USE COMMUNITY BENEFIT FUNDS , IN-KIND2 PERSONNEL TIME, OR FEDERAL RELIEF FUNDING FOR THE TWENTY -FIVE3 PERCENT MATCH REQUIRED PURSUANT TO THIS SUBSECTION (3)(c)(I)(A).4 (B) IF A GRANT RECIPIENT IS A HOSPITAL -OWNED OR5 HOSPITAL-AFFILIATED PRACTICE THAT IS PART OF A HOSPITAL SYSTEM6 OR HAS TEN PERCENT OR MORE TOTAL PROFIT AS MEASURED BY STATE7 DEPARTMENT TRANSPARENCY REPORTING , THE GRANT RECIPIENT SHALL8 PROVIDE A FIFTY PERCENT MATCH FOR THE AWARDED AMOUNT . THE9 GRANT RECIPIENT MAY USE COMMUNITY BENEFIT FUNDS , IN-KIND10 PERSONNEL TIME, OR FEDERAL RELIEF FUNDING FOR THE FIFTY PERCENT11 MATCH REQUIRED PURSUANT TO THIS SUBSECTION (3)(c)(I)(B).12 (C) IF A GRANT RECIPIENT IS A CRITICAL ACCESS HOSPITAL , AS13 DEFINED IN SECTION 10-16-1303 (2), THE GRANT RECIPIENT SHALL14 PROVIDE A TEN PERCENT MATCH FOR THE AWARDED AMOUNT. THE GRANT15 RECIPIENT MAY USE COMMUNITY BENEFIT FUNDS, IN-KIND PERSONNEL16 TIME, OR FEDERAL RELIEF FUNDING FOR THE TEN PERCENT MATCH17 REQUIRED PURSUANT TO THIS SUBSECTION (3)(c)(I)(C).18 (II) FOR THE PURPOSES OF THIS SUBSECTION (3)(c),19 "HOSPITAL-AFFILIATED" MEANS THERE IS A CONTRACTUAL RELATIONSHIP20 BETWEEN A HOSPITAL OR AN ENTITY THAT IS OWNED BY OR UNDER21 COMMON OWNERSHIP AND CONTROL WITH THE HOSPITAL IN WHICH THE22 CONTRACTUAL RELATIONSHIP ENABLES THE HOSPITAL OR ENTITY THAT IS23 OWNED BY OR UNDER COMMON OWNERSHIP AND CONTROL WITH THE24 HOSPITAL TO EXERCISE CONTROL OVER ONE OF THE FOLLOWING ENTITIES:25 (A) ANOTHER HOSPITAL;26 (B) AN ENTITY OWNED BY OR UNDER COMMON OWNERSHIP AND27 1302 -5- CONTROL WITH ANOTHER HOSPITAL ; OR1 (C) A PHYSICIAN GROUP PRACTICE.2 (d) T HE STATE DEPARTMENT MAY PROVIDE FUNDING TO PHYSICAL3 AND BEHAVIORAL HEALTH-CARE PROVIDERS THROUGH INFRASTRUCTURE4 BUILDING AND POPULATION-BASED PAYMENT MECHANISMS .5 (e) G RANT RECIPIENTS SHALL PARTICIPATE IN TECHNICAL6 ASSISTANCE EDUCATION AND TRAINING AND RELATED WORKGROUPS AS7 DETERMINED BY THE STATE DEPARTMENT .8 (4) (a) T HE STATE DEPARTMENT SHALL ADMINISTER THE GRANT9 PROGRAM AND, SUBJECT TO AVAILABLE APPROPRIATIONS , SHALL AWARD10 GRANTS AS PROVIDED IN THIS SECTION . SUBJECT TO AVAILABLE11 APPROPRIATIONS, GRANTS SHALL BE PAID OUT OF THE BEHAVIORAL AND12 MENTAL HEALTH CASH FUND CREATED IN SECTION 24-75-230.13 (b) I N ORDER TO SUPPORT REAL -TIME TRANSFORMATION AND14 ACCESS TO CARE, THE STATE DEPARTMENT SHALL ENSURE TIMELY15 PAYMENT TO GRANT RECIPIENTS FOR SERVICES RELATED TO THE GRANT16 PROGRAM.17 (5) G RANT APPLICANTS SHALL DEMONSTRATE A COMMITMENT TO18 MAINTAINING MODELS AND PROGRAMS THAT , AT A MINIMUM:19 (a) M EASURABLY INCREASE ACCESS TO BEHAVIORAL HEALTH20 SCREENING, REFERRAL, TREATMENT, AND RECOVERY CARE;21 (b) I MPLEMENT OR EXPAND EVIDENCE -BASED MODELS FOR22 INTEGRATION;23 (c) L EVERAGE MULTIDISCIPLINARY TREATMENT TEAMS ;24 (d) S ERVE PUBLICLY FUNDED CLIENTS;25 (e) M AINTAIN A PLAN FOR HOW TO ADDRESS A CLIENT WITH26 EMERGENCY NEEDS;27 1302 -6- (f) MAINTAIN A PLAN FOR HOW TECHNOLOGY WILL BE LEVERAGED1 FOR WHOLE-PERSON CARE, WHICH MAY INCLUDE PLANS FOR DATA2 SECURITY, ELECTRONIC HEALTH RECORDS REFORMS , AND TELEHEALTH3 IMPLEMENTATION OR EXPANSION ; AND4 (g) I MPLEMENT OR ENGAGE IN STATE -DEPARTMENT-SPECIFIED5 TOOLS AND SHARED LEARNING AND RESOURCES , INCLUDING BUT NOT6 LIMITED TO:7 (I) P EER LEARNING COLLABORATIVES TO DEVELOP SUSTAINABLE8 POPULATION-BASED PAYMENT MODELS LED BY THE STATE DEPARTMENT ;9 (II) U SE OF ELECTRONIC TOOLS FOR SCREENING AND REFERRALS ;10 AND11 (III) D ATA-SHARING BEST PRACTICES.12 (6) I N SELECTING GRANT RECIPIENTS, THE STATE DEPARTMENT13 SHALL FIRST PRIORITIZE APPLICANTS THAT SERVE PRIORITY POPULATIONS14 THAT EXPERIENCE DISPARITIES IN HEALTH-CARE ACCESS AND OUTCOMES,15 INCLUDING BUT NOT LIMITED TO HISTORICALLY MARGINALIZED AND16 UNDERSERVED COMMUNITIES, DETERMINED BY THE COMMUNITIES WITH17 THE HIGHEST PROPORTION OF PATIENTS RECEIVING ASSISTANCE THROUGH18 THE "COLORADO MEDICAL ASSISTANCE ACT", ARTICLES 4, 5, AND 6 OF19 TITLE 25.5. THE STATE DEPARTMENT SHALL THEN PRIORITIZE APPLICANTS20 THAT MEET AS MANY OF THE FOLLOWING CRITERIA AS POSSIBLE :21 (a) S ERVE INDIVIDUALS WITH CO-OCCURRING AND COMPLEX CARE22 NEEDS, SERIOUS MENTAL ILLNESSES, OR DISABILITIES;23 (b) S ERVE CHILDREN AND YOUTH;24 (c) I NCLUDE OPPORTUNITIES TO BUILD OUT COMMUNITY HEALTH25 WORKER, BEHAVIORAL HEALTH AIDE, OR SIMILAR PROGRAMS, SUPPORTED26 BY POPULATION-BASED PAYMENTS;27 1302 -7- (d) SERVE PREGNANT AND POSTPARTUM PEOPLE ;1 (e) THE PRACTICE IS CONSIDERED A SMALL AND INDEPENDENT2 PRACTICE;3 (f) DEMONSTRATE THE ABILITY AND INTENT TO SERVE4 CULTURALLY DIVERSE POPULATIONS AND POPULATIONS WITH LIMITED5 ENGLISH PROFICIENCY;6 (g) INCLUDE WORKFORCE CAPACITY -BUILDING COMPONENTS;7 (h) INCLUDE HIGH-INTENSITY OUTPATIENT SERVICES;8 (i) IMPROVE DATA EXCHANGE AND DATA INTEGRATION THAT9 SUPPORTS WHOLE-PERSON CARE;10 (j) UTILIZE TELEHEALTH;11 (k) ALIGN WITH OR PARTICIPATE IN COMMERCIAL ALTERNATIVE12 PAYMENT MODELS;13 (l) DEMONSTRATE COMMUNITY PARTNERSHIPS ; OR14 (m) PARTICIPATE IN THE REGIONAL HEALTH CONNECTOR15 WORKFORCE PROGRAM CREATED IN SECTION 23-21-901.16 (7) (a) T HE STATE DEPARTMENT SHALL ESTABLISH A SET OF17 STATEWIDE RESOURCES TO SUPPORT GRANT RECIPIENTS . AT A MINIMUM,18 THE RESOURCES MUST INCLUDE :19 (I) A CLINICAL CONSULTATION AND PRACTICE TRANSFORMATION20 SUPPORT TEAM PROVIDED BY THE COLORADO HEALTH EXTENSION SYSTEM21 IN THE PRACTICE INNOVATION PROGRAM ; AND22 (II) A SUSTAINABLE BILLING AND DATA PARTNERSHIP TEAM THAT23 WILL TRAIN AND SUPPORT GRANT RECIPIENTS IN MEETING ST ANDARDS FOR24 ALTERNATIVE PAYMENT MODELS AND CREATING AND IMPLEMENTING25 DATA-SHARING PRACTICES AND POLICIES THAT SUPPORT MENTAL HEALTH26 DISORDERS, SUBSTANCE USE DISORDERS, AND CO-OCCURRING DISORDERS.27 1302 -8- (b) THE STATE DEPARTMENT MAY ENTER INTO INTERAGENCY1 AGREEMENTS OR PROCURE CONTRACTS TO ESTABLISH THE RESOURCES2 PURSUANT TO THIS SUBSECTION (7).3 (8) T HE STATE DEPARTMENT MAY PROCURE A GRANT APPLICATION4 AND SUPPORT TEAM TO ASSIST THE STATE DEPARTMENT WITH DRAFTING5 THE GRANT APPLICATION, REVIEWING APPLICATIONS, AND ADMINISTERING6 AND PROCESSING GRANT AWARDS .7 (9) A GRANT RECIPIENT SHALL SPEND OR OBLIGATE ANY MONEY8 RECEIVED PURSUANT TO THIS SECTION NO LATER THAN DECEMBER 30,9 2024. ANY MONEY A GRANT RECIPIENT OBLIGATES MUST BE EXPENDED NO10 LATER THAN DECEMBER 30, 2026.11 (10) (a) T HE STATE DEPARTMENT SHALL ESTABLISH A STEERING12 COMMITTEE TO:13 (I) P ROVIDE CONTINUOUS INPUT INTO GRANT APPLICATION14 REQUIREMENTS;15 (II) P ROVIDE FEEDBACK AND DIRECTION ON DATA COLLECTION16 STANDARDS AND REVIEW ; AND17 (III) E NGAGE WITH COMMUNITY PARTNERS WHO WILL HELP18 SUPPORT THE INTEGRATED CARE PRACTICES THROUGH REFERRALS AND19 TRUSTED COMMUNICATIONS .20 (b) T HE STATE DEPARTMENT SHALL SELECT A STATE DEPARTMENT21 EMPLOYEE TO CHAIR THE STEERING COMMITTEE , STAFF THE STEERING22 COMMITTEE, AND REIMBURSE ANY PARTICIPANT WHO IS NOT A STATE23 EMPLOYEE FOR REASONABLE TRAVEL EXPENSES .24 (11) T HE STATE DEPARTMENT SHALL , IN COLLABORATION WITH25 THE BEHAVIORAL HEALTH ADMINISTRATION AND THE DIVISION OF26 INSURANCE, PREPARE A REPORT THAT INCLUDES RECOMMENDATIONS ON27 1302 -9- BEST PRACTICES FOR SUSTAINING INTEGRATED CARE MODELS . IN1 PREPARING THE REPORT, THE STATE DEPARTMENT SHALL COLLECT DATA2 FROM EACH GRANT RECIPIENT RELATED TO CLINICAL QUALITY3 IMPROVEMENT AND ACCESS TO CARE . GRANT RECIPIENTS SHALL PROVIDE4 DATA TO THE STATE DEPARTMENT IN A TIMELY MANNER , AS DETERMINED5 BY THE STATE DEPARTMENT. THE STATE DEPARTMENT IS AUTHORIZED TO6 RECOUP OR DISCONTINUE GRANT FUNDING FOR GRANT RECIPIENTS THAT7 DO NOT COMPLY WITH THE DATA REPORTING REQUIREMENTS OR GRANT8 STANDARDS SET BY THE STATE DEPARTMENT .9 (12) T HE STATE DEPARTMENT AND ANY PERSON WHO RECEIVES10 MONEY FROM THE STATE DEPARTMENT PURSUANT TO THIS SECTION SHALL11 COMPLY WITH THE COMPLIANCE , REPORTING, RECORD-KEEPING, AND12 PROGRAM EVALUATION REQUIREMENTS ESTABLISHED BY THE OFFICE OF13 STATE PLANNING AND BUDGETING AND THE STATE CONTROLLER IN14 ACCORDANCE WITH SECTION 24-75-226 (5).15 (13) T HIS SECTION IS REPEALED, EFFECTIVE JULY 1, 2027.16 SECTION 3. In Colorado Revised Statutes, 25.5-5-402, add (3.5)17 as follows:18 25.5-5-402. Statewide managed care system - rules - definition19 - repeal. (3.5) (a) N O LATER THAN JULY 1, 2023, THE STATE20 DEPARTMENT, IN COLLABORATION WITH THE BEHAVIORAL HEALTH21 ADMINISTRATION IN THE DEPARTMENT OF HUMAN SERVICES AND OTHER22 STATE AGENCIES, SHALL DEVELOP THE UNIVERSAL CONTRACT AS23 DESCRIBED IN SECTION 27-50-203.24 (b) (I) F OR THE 2022-23 STATE FISCAL YEAR, THE GENERAL25 ASSEMBLY SHALL APPROPRIATE THREE MILLION DOLLARS FROM THE26 BEHAVIORAL AND MENTAL HEALTH CASH FUND , CREATED IN SECTION27 1302 -10- 24-75-230, TO THE STATE DEPARTMENT FOR THE DEVELOPMENT ,1 IMPLEMENTATION, AND ADMINISTRATION OF THE UNIVERSAL CONTRACT .2 (II) T HIS SUBSECTION (3.5)(b) IS REPEALED, EFFECTIVE JULY 1,3 2024.4 SECTION 4. Appropriation. (1) For the 2022-23 state fiscal5 year, $31,750,000 is appropriated to the department of health care policy6 and financing for use by other medical services. This appropriation is7 from the behavioral and mental health cash fund created in section8 24-75-230 (2)(a), C.R.S., is of money the state received from the federal9 coronavirus state fiscal recovery fund, and is based on an assumption that10 the division will require an additional 2.3 FTE. To implement this act, the11 division may use this appropriation for the primary care and behavioral12 health statewide integration grant program. Any money appropriated in13 this section not expended prior to July 1, 2023, is further appropriated to14 the division from July 1, 2023, through December 30, 2024, for the same15 purpose.16 (2) For the 2022-23 state fiscal year, $3,000,000 is appropriated to17 the department of health care policy and financing for use by the18 executive director's office, general administration. This appropriation is19 from the behavioral and mental health cash fund created in section20 24-75-230 (2)(a), C.R.S., and is of money the state received from the21 federal coronavirus state fiscal recovery fund. To implement this act, the22 division may use this appropriation for the universal contract for23 behavioral health services. Any money appropriated in this section not24 expended prior to July 1, 2023, is further appropriated to the division25 from July 1, 2023, through December 30, 2024, for the same purpose.26 (3) For the 2022-23 fiscal year, $250,000 is appropriated to the27 1302 -11- department of higher education for use by the regents of the university of1 Colorado. This appropriation is from the behavioral and mental health2 cash fund created in section 24-75-230 (2)(a), C.R.S., and is of money the3 state received from the federal coronavirus state fiscal recovery fund. To4 implement this act, the regents may use this appropriation for allocation5 to the school of medicine for the regional health connector workforce6 program.7 SECTION 5. Effective date. This act takes effect upon passage;8 except that section 3 of this act takes effect only if House Bill 22-12789 becomes law, in which case section 3 takes effect either upon the10 effective date of this act or House Bill 22-1278, whichever is later.11 SECTION 6. Safety clause. The general assembly hereby finds,12 determines, and declares that this act is necessary for the immediate13 preservation of the public peace, health, or safety.14 1302 -12-