Page 1 April 26, 2023 SB 23-176 Legislative Council Staff Nonpartisan Services for Colorado’s Legislature Revised Fiscal Note (replaces fiscal note dated March 20, 2023) Drafting Number: Prime Sponsors: LLS 23-0473 Sen. Moreno; Cutter Rep. deGruy Kennedy Date: Bill Status: Fiscal Analyst: April 26, 2023 House Public & Behavioral Health Shukria Maktabi | 303-866-4720 shukria.maktabi@coleg.gov Bill Topic: PROTECTIONS FOR PEOPLE WITH AN EATING DISORDER Summary of Fiscal Impact: ☒ State Revenue ☒ State Expenditure ☐ State Transfer ☐ TABOR Refund ☐ Local Government ☐ Statutory Public Entity The bill creates prohibitions and requirements related to health care services for individuals with disordered eating. The bill minimally increases state expenditures beginning in FY 2023-24. Appropriation Summary: No appropriation is required. Fiscal Note Status: This revised fiscal note reflects the reengrossed bill. Summary of Legislation The bill creates prohibitions and requirements related to health care services for individuals with disordered eating, including: prohibiting Medicaid, starting July 1, 2023, and health insurance plans, starting January 1, 2024, from using body mass index, ideal body weight, or any achieved weight standard to determine medical need or the level of care for individuals with disordered eating; and prohibiting retail establishments from selling over-the-counter diet pills to individuals under 18-years-old without prescriptions, with rules to be created by the State Board of Pharmacy within the Department of Regulatory Agencies (DORA). State Expenditures The bill increases state workload for DORA and the Department of Health Care Policy and Financing beginning in FY 2023-24, as discussed below. Page 2 April 26, 2023 SB 23-176 Department of Regulatory Agencies. Workload in the Division of Insurance and the State Board of Pharmacy, both located within DORA, will increase by a minimal amount starting in FY 2023-24. Specifically, these divisions will need to update rules, conduct outreach with health insurance carriers and retail establishments, and respond to consumer inquiries and complaints. It is assumed that this work can be accomplished within existing appropriations. Department of Health Care Policy and Financing. Any impact from the prohibition on using certain metrics to determine medical necessity is anticipated to have a minimal effect on the number of Medicaid members with disordered eating from being admitted and discharged from residential facilities, or the length of time members stay in such facilities. Any changes in utilization will be addressed through the annual budget process. Effective Date The bill takes effect upon signature of the Governor, or upon becoming law without his signature, except the requirement for health benefit plans takes effect on January 1, 2024, and the requirement on retail establishments takes effect July 1, 2024. State and Local Government Contacts Behavioral Health Administration Corrections Health Care Policy and Financing Higher Education Human Services Information Technology Law Public Health and Environment Regulatory Agencies Revenue 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.