HOUSE BILL 24-1086
BY REPRESENTATIVE(S) Holtorf and Amabile, Bacon, Bird,
Boesenecker, Brown, Clifford, deGruy Kennedy, Duran, Epps, Froelich,
Hamrick, Hernandez, Herod, Jodeh, Lieder, Lindsay, Lindstedt, Mabrey,
Martinez, Mauro, McCormick, Ortiz, Rutinel, Sirota, Snyder, Soper,
Taggart, Titone, Valdez, Vigil, Weissman, Young, McCluskie;
also SENATOR(S) Michaelson Jenet, Buckner, Danielson, Priola,
Rodriguez.
C
ONCERNING THE OPERATION OF THE DENVER HEALTH AND HOSPITAL
AUTHORITY
.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. Legislative declaration. (1) The general assembly
finds that:
(a) Safety net hospitals are experiencing significant financial
hardships due to uncompensated care, increased staffing costs, inflation,
and federal money that is no longer available. Hospitals are seeing more
uninsured, underinsured, and medicaid patients. Safety net hospitals are
caring for patients longer, with less revenue and increased expenses, and
they are struggling with how to provide care for their communities. Rural
________
Capital letters or bold & italic numbers indicate new material added to existing law; dashes
through words or numbers indicate deletions from existing law and such material is not part of
the act. safety net hospitals and Denver health are the mostly heavily burdened by
these increasing financial hardships.
(b) Denver health and hospital authority is the largest safety net
hospital in Colorado, serving patients from 63 out of the 64 counties in the
state;
(c) From 2020 to 2023, uncompensated care at Denver health has
increased 127% due to underpayment from public insurance companies and
increases in uninsured patients, including migrants and people experiencing
homelessness;
(d) In 2023, Denver health is projected to provide more than $135
million in uncompensated care;
(e) Increased demand for services among uninsured and
underinsured patients and increases in the number of homeless patients and
those with a mental health diagnosis, together with the increasing expenses
and stagnating public funding from federal, state, and local governments,
have created an unsustainable financial situation for Denver health;
(f) As a safety net hospital on the front line of providing health-care
services statewide, it is important for the health of Coloradans that Denver
health is financially stable and remains a valuable health-care resource; and
(g) As the largest safety net hospital in Colorado, Denver health
maintains and invests in administrative infrastructure necessary to carry out
the responsibilities of serving a disproportionate share of medicaid members
and uninsured individuals. Because of this, Denver health is unable to
generate sufficient revenue to fulfill the ongoing investment need.
(2) Therefore, the general assembly declares it is important to
provide authority to the department of health care policy and financing to
assist safety net hospitals, such as Denver health, in becoming financially
stable.
SECTION 2. In Colorado Revised Statutes, 25.5-5-402, amend
(7.5)(a) and (7.5)(b)(II) as follows:
25.5-5-402. Statewide managed care system - rules - definitions
PAGE 2-HOUSE BILL 24-1086 - repeal. (7.5) (a) The state department shall offer to enter into a direct
contract
FOR PHYSICAL HEALTH-CARE SERVICES with the MCO operated by
or under the control of Denver health and hospital authority, created
pursuant to article 29 of title 25, until the MCO ceases to operate a medicaid
managed care program or until June 30, 2025, unless sooner reprocured
FROM JULY 1, 2025, UNTIL JUNE 30, 2032, AS LONG AS THE MCO MEETS ALL
MCO CRITERIA REQUIRED BY THE STATE DEPARTMENT . If the state
department designates an MCE
OTHER THAN THE MCO OPERATED BY OR
UNDER THE CONTROL OF
DENVER HEALTH AND HOSPITAL AUTHORITY to
manage behavioral health
HEALTH-CARE services pursuant to this article 5,
Denver health and hospital authority, or any subsidiary, thereof, shall
collaborate with the MCO MCE during the term of contract.
(b) The MCO operated by or under the control of Denver health and
hospital authority shall:
(II) Accept rates determined by the state department, through
standard methodologies, to cover the population it is serving. R
ATES PAID
BY THE
MCO TO CONTRACTED PROVIDERS MUST NOT BE HIGHER THAN THE
STATE DEPARTMENT
'S MEDICAID FEE FOR SERVICE RATES UNLESS THE
PROVIDER ENTERS INTO A QUALITY INCENTIVE AGREEMENT WITH THE
MCO.
SECTION 3. In Colorado Revised Statutes, amend 25.5-4-427 as
follows:
25.5-4-427. State payment to the Denver health and hospital
authority. (1) The state department shall distribute money appropriated for
a supplemental
payment to the Denver health and hospital authority created
in section 25-29-103.
(2) This section is repealed, effective July 1, 2024.
SECTION 4. Safety clause. The general assembly finds,
determines, and declares that this act is necessary for the immediate
PAGE 3-HOUSE BILL 24-1086 preservation of the public peace, health, or safety or for appropriations for
the support and maintenance of the departments of the state and state
institutions.
____________________________ ____________________________
Julie McCluskie Steve Fenberg
SPEAKER OF THE HOUSE PRESIDENT OF
OF REPRESENTATIVES THE SENATE
____________________________ ____________________________
Robin Jones Cindi L. Markwell
CHIEF CLERK OF THE HOUSE SECRETARY OF
OF REPRESENTATIVES THE SENATE
APPROVED________________________________________
(Date and Time)
_________________________________________
Jared S. Polis
GOVERNOR OF THE STATE OF COLORADO
PAGE 4-HOUSE BILL 24-1086