Second Regular Session Seventy-fourth General Assembly STATE OF COLORADO ENGROSSED This Version Includes All Amendments Adopted on Second Reading in the House of Introduction LLS NO. 24-1095.01 Shelby Ross x4510 HOUSE BILL 24-1400 House Committees Senate Committees Appropriations A BILL FOR AN ACT C ONCERNING MEDICAID ELI GIBILITY PROCEDURES .101 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/ .) Joint Budget Committee. Current law suspends certain provisions related to medicaid eligibility until June 1, 2024. The bill extends the suspension of those provisions until January 1, 2025. The bill authorizes the department of health care policy and financing (state department) to seek federal authorization to not require additional verification during a medicaid member's (member) eligibility reenrollment process if information about the member's income or assets is not verified through a federally approved electronic data source. HOUSE 2nd Reading Unamended March 28, 2024 HOUSE SPONSORSHIP Bird and Sirota, Taggart SENATE SPONSORSHIP Kirkmeyer and Zenzinger, Bridges Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment. Capital letters or bold & italic numbers indicate new material to be added to existing law. Dashes through the words or numbers indicate deletions from existing law. For a member's income verification, the bill authorizes the state department to use the information on file or the information that was originally collected during the application process to determine whether the member is eligible for reenrollment. The state department shall require additional income verification if information about a member's income is not verified through a federally approved electronic data source for 2 or more consecutive years or as specified through federal authorization. For a member's asset verification, the state department may complete the member's eligibility reenrollment process without any additional asset verification if there has been no change in the member's assets since the initial verification during the application process or as specified through federal authorization. The bill authorizes the state department to seek federal authorization to delay a member's procedural termination during the reenrollment process to allow the member to continue receiving necessary services during the reenrollment process. The bill authorizes the state department to apply this delay in procedural termination to a specific population or as specified through federal authorization. The bill authorizes the state department to seek federal authorization to allow an applicant's or member's eligibility for reenrollment to be based on financial findings from the supplemental nutrition assistance program, the temporary assistance for needy families program, and other means-tested benefit programs administered through the Colorado benefits management system. The state department may apply financial eligibility for medicaid to individuals whose gross income program and assets for applicable means-tested benefit programs are below applicable medicaid limits, regardless of differences in household composition and income-counting rules between programs or as specified through federal authorization. Be it enacted by the General Assembly of the State of Colorado:1 SECTION 1. In Colorado Revised Statutes, 25.5-5-101, amend2 (6)(a) introductory portion, (6)(b), and (6)(c) as follows:3 25.5-5-101. Mandatory provisions - eligible groups - rules -4 repeal. (6) (a) To ensure that the state department maintains access to5 state and federal funding provided by the federal "Families First6 Coronavirus Response Act", Pub.L. 116-127, and the federal7 "Consolidated Appropriations Act, 2023", the following subsections of8 1400-2- this section are suspended until June 1, 2024 JANUARY 1, 2025:1 (b) The state board may adopt rules to implement this subsection2 (6) to ensure that the state department can resume routine operations by3 June 1, 2024, that follow guidance issued by the federal centers for4 medicare and medicaid services, including terminations of eligibility, the5 processing of eligibility renewals, and the transition between medical6 assistance and children's basic health plan eligibility categories.7 (c) This subsection (6) is repealed, effective June 1, 20248 J ANUARY 1, 2025.9 SECTION 2. In Colorado Revised Statutes, 25.5-5-201, amend10 (7)(a) introductory portion, (7)(b), and (7)(c) as follows:11 25.5-5-201. Optional provisions - optional groups - rules -12 repeal. (7) (a) To ensure that the state department maintains access to13 state and federal funding provided by the federal "Families First14 Coronavirus Response Act", Pub.L. 116-127, and the federal15 "Consolidated Appropriations Act, 2023", the following subsections of16 this section are suspended until June 1, 2024 JANUARY 1, 2025:17 (b) The state board may adopt rules to implement this subsection18 (7) to ensure that the state department can resume routine operations by19 June 1, 2024, that follow guidance issued by the federal centers for20 medicare and medicaid services, including terminations of eligibility, the21 processing of eligibility renewals, and the transition between medical22 assistance and children's basic health plan eligibility categories.23 (c) This subsection (7) is repealed, effective June 1, 202424 J ANUARY 1, 2025.25 SECTION 3. In Colorado Revised Statutes, 25.5-4-205, amend26 (3)(b)(I.5) and (3)(f) as follows:27 1400 -3- 25.5-4-205. Application - verification of eligibility -1 demonstration project - rules - repeal. (3) (b) (I.5) (A) If the state2 department determines that a recipient MEMBER was not eligible for3 medical benefits solely based upon the recipient's MEMBER'S income after4 the recipient MEMBER had been determined to be eligible based upon5 electronic data obtained through a federally approved electronic data6 source, the state department shall not pursue recovery from a county7 department for the cost of medical services provided to the recipient8 MEMBER, and the county department is not responsible for any federal9 error rate sanctions resulting from such THE determination.10 (B) Notwithstanding any other provision in this paragraph (b)11 SUBSECTION (3)(b), for applications that contain self-employment income,12 the state department shall not implement this paragraph (b) SUBSECTION13 (3)(b) until it THE STATE DEPARTMENT can verify self-employment income14 through federally approved electronic data sources as authorized by rules15 of the state department and federal law.16 (C) T HE STATE DEPARTMENT MAY SEEK FEDERAL AUTHORIZATION17 TO NOT REQUIRE ADDITIONAL VERIFICATION DURING A MEMBER 'S18 ELIGIBILITY REENROLLMENT PROCESS IF INFORMATION ABOUT THE19 MEMBER'S INCOME IS NOT VERIFIED THROUGH A FEDERALLY APPROVED20 ELECTRONIC DATA SOURCE . THE STATE DEPARTMENT MAY USE THE21 INFORMATION ON FILE OR THE INFORMATION THAT WAS ORIGINALLY22 COLLECTED DURING THE APPLICATION PROCESS TO DETERMINE WHETHER23 THE MEMBER IS ELIGIBLE FOR REENROLLMENT . NOTWITHSTANDING THIS24 SUBSECTION (3)(b)(I.5)(C) TO THE CONTRARY, THE STATE DEPARTMENT25 SHALL REQUIRE ADDITIONAL INCOME VERIFICATION IF INFORMATION26 ABOUT A MEMBER'S INCOME IS NOT VERIFIED THROUGH A FEDERALLY27 1400 -4- APPROVED ELECTRONIC DATA SOURCE FOR TWO OR MORE CONSECUTIVE1 YEARS OR AS SPECIFIED THROUGH FEDERAL AUTHORIZATION .2 (D) T HE STATE DEPARTMENT MAY SEEK FEDERAL AUTHORIZATION3 TO NOT REQUIRE ADDITIONAL VERIFICATION DURING A MEMBER 'S4 ELIGIBILITY REENROLLMENT PROCESS IF INFORMATION ABOUT THE5 MEMBER'S ASSETS IS NOT VERIFIED THROUGH A FEDERALLY APPROVED6 ELECTRONIC DATA SOURCE IN A REASONABLE TIME , AS DETERMINED BY7 THE STATE DEPARTMENT. THE STATE DEPARTMENT MAY COMPLETE THE8 MEMBER'S ELIGIBILITY REENROLLMENT PROCESS WITHOUT ANY9 ADDITIONAL VERIFICATION OF THE MEMBER 'S ASSETS IF THERE HAS BEEN10 NO CHANGE IN THE MEMBER 'S ASSETS SINCE THE INITIAL VERIFICATION11 DURING THE APPLICATION PROCESS OR AS SPECIFIED THROUGH FEDERAL12 AUTHORIZATION.13 (E) T HE STATE DEPARTMENT MAY SEEK FEDERAL AUTHORIZATION14 TO DELAY A MEMBER 'S PROCEDURAL TERMINATION DURING THE15 REENROLLMENT PROCESS TO ALLOW THE MEMBER TO CONTINUE16 RECEIVING NECESSARY SERVICES DURING THE REENROLLMENT PROCESS .17 T HE STATE DEPARTMENT MAY APPLY THIS DELAY IN PROCEDURAL18 TERMINATION TO A SPECIFIC POPULATION OR AS SPECIFIED THROUGH19 FEDERAL AUTHORIZATION.20 (F) T HE STATE DEPARTMENT MAY SEEK FEDERAL AUTHORIZATION21 TO ALLOW AN APPLICANT'S OR MEMBER'S ELIGIBILITY FOR REENROLLMENT22 TO BE BASED ON FINANCIAL FINDINGS FROM THE SUPPLEMENTAL23 NUTRITION ASSISTANCE PROGRAM ESTABLISHED PURSUANT TO PART 3 OF24 ARTICLE 2 OF TITLE 26, THE TEMPORARY ASSISTANCE FOR NEEDY FAMILIES25 PROGRAM ESTABLISHED PURSUANT TO PART 7 OF ARTICLE 2 OF TITLE 26,26 AND OTHER MEANS-TESTED BENEFIT PROGRAMS ADMINISTERED THROUGH27 1400 -5- THE COLORADO BENEFITS MANAGEMENT SYSTEM . THE STATE1 DEPARTMENT MAY APPLY FINANCIAL ELIGIBILITY FOR MEDICAID TO2 INDIVIDUALS WHOSE GROSS INCOME PROGRAM AND ASSETS FOR3 APPLICABLE MEANS-TESTED BENEFIT PROGRAMS ARE BELOW APPLICABLE4 MEDICAID LIMITS, REGARDLESS OF DIFFERENCES IN HOUSEHOLD5 COMPOSITION AND INCOME-COUNTING RULES BETWEEN PROGRAMS OR AS6 SPECIFIED THROUGH FEDERAL AUTHORIZATION .7 (G) S UBJECT TO AVAILABLE APPROPRIATIONS AND UPON8 RECEIVING NECESSARY FEDERAL AUTHORIZATION , THE STATE9 DEPARTMENT MAY IMPLEMENT SUBSECTIONS (3)(b)(I.5)(C), (3)(b)(I.5)(D),10 (3)(b)(I.5)(E), AND (3)(b)(I.5)(F) OF THIS SECTION.11 (f) (I) To ensure that the state department maintains access to state12 and federal funding provided by the federal "Families First Coronavirus13 Response Act", Pub.L. 116-127, and the federal "Consolidated14 Appropriations Act, 2023", subsections (3)(b)(I) and (3)(d) of this section15 requiring the collection or verification of any information related to16 medical assistance eligibility factors, including citizenship, household17 size, income, or assets for those individuals already enrolled in the18 medical assistance program, are suspended until June 1, 2024 JANUARY19 1, 2025.20 (II) The state board may adopt rules to implement this subsection21 (3)(f) to ensure that the state department can resume routine operations22 by June 1, 2024, that follow guidance issued by the federal centers for23 medicare and medicaid services, including terminations of eligibility, the24 processing of eligibility renewals, and the transition between medical25 assistance and children's basic health plan eligibility categories.26 (III) This subsection (3)(f) is repealed, effective June 1, 202427 1400 -6- JANUARY 1, 2025.1 SECTION 4. In Colorado Revised Statutes, 25.5-6-1404, amend2 (6)(c) as follows:3 25.5-6-1404. Medicaid buy-in program - eligibility - premiums4 - medicaid buy-in fund - report - rules - repeal. (6) (c) This subsection5 (6) is repealed, effective June 1, 2024 SEPTEMBER 1, 2025.6 SECTION 5. In Colorado Revised Statutes, 25.5-8-109, amend7 (8); and add (4.5)(a)(VI), (4.5)(a)(VII), (4.5)(a)(VIII), (4.5)(a)(IX), and8 (4.5)(a)(X) as follows:9 25.5-8-109. Eligibility - children - pregnant women - rules -10 repeal. (4.5) (a) (VI) T HE STATE DEPARTMENT MAY SEEK FEDERAL11 AUTHORIZATION TO NOT REQUIRE ADDITIONAL VERIFICATION DURING A12 MEMBER'S ELIGIBILITY REENROLLMENT PROCESS IF INFORMATION ABOUT13 THE MEMBER'S INCOME IS NOT VERIFIED THROUGH A FEDERALLY14 APPROVED ELECTRONIC DATA SOURCE . THE STATE DEPARTMENT MAY USE15 THE INFORMATION ON FILE OR THE INFORMATION THAT WAS ORIGINALLY16 COLLECTED DURING THE APPLICATION PROCESS TO DETERMINE WHETHER17 THE MEMBER IS ELIGIBLE FOR REENROLLMENT . NOTWITHSTANDING THIS18 SUBSECTION (4.5)(a)(VI) TO THE CONTRARY, THE STATE DEPARTMENT19 SHALL REQUIRE ADDITIONAL INCOME VERIFICATION IF INFORMATION20 ABOUT A MEMBER'S INCOME IS NOT VERIFIED THROUGH A FEDERALLY21 APPROVED ELECTRONIC DATA SOURCE FOR TWO OR MORE CONSECUTIVE22 YEARS OR AS SPECIFIED THROUGH FEDERAL AUTHORIZATION .23 (VII) T HE STATE DEPARTMENT MAY SEEK FEDERAL24 AUTHORIZATION TO NOT REQUIRE ADDITIONAL VERIFICATION DURING A25 MEMBER'S ELIGIBILITY REENROLLMENT PROCESS IF INFORMATION ABOUT26 THE MEMBER'S ASSETS IS NOT VERIFIED THROUGH A FEDERALLY APPROVED27 1400 -7- ELECTRONIC DATA SOURCE IN A REASONABLE TIME , AS DETERMINED BY1 THE STATE DEPARTMENT. THE STATE DEPARTMENT MAY COMPLETE THE2 MEMBER'S ELIGIBILITY REENROLLMENT PROCESS WITHOUT ANY3 ADDITIONAL VERIFICATION OF THE MEMBER 'S ASSETS IF THERE HAS BEEN4 NO CHANGE IN THE MEMBER 'S ASSETS SINCE THE INITIAL VERIFICATION5 DURING THE APPLICATION PROCESS OR AS SPECIFIED THROUGH FEDERAL6 AUTHORIZATION.7 (VIII) T HE STATE DEPARTMENT MAY SEEK FEDERAL8 AUTHORIZATION TO DELAY A MEMBER 'S PROCEDURAL TERMINATION9 DURING THE REENROLLMENT PROCESS TO ALLOW THE MEMBER TO10 CONTINUE RECEIVING NECESSARY SERVICES DURING THE REENROLLMENT11 PROCESS. THE STATE DEPARTMENT MAY APPLY THIS DELAY IN12 PROCEDURAL TERMINATION TO A SPECIFIC POPULATION OR AS SPECIFIED13 THROUGH FEDERAL AUTHORIZATION .14 (IX) T HE STATE DEPARTMENT MAY SEEK FEDERAL AUTHORIZATION15 TO ALLOW AN APPLICANT'S OR MEMBER'S ELIGIBILITY FOR REENROLLMENT16 TO BE BASED ON FINANCIAL FINDINGS FROM THE SUPPLEMENTAL17 NUTRITION ASSISTANCE PROGRAM ESTABLISHED PURSUANT TO PART 3 OF18 ARTICLE 2 OF TITLE 26, THE TEMPORARY ASSISTANCE FOR NEEDY FAMILIES19 PROGRAM ESTABLISHED PURSUANT TO PART 7 OF ARTICLE 2 OF TITLE 26,20 AND OTHER MEANS-TESTED BENEFIT PROGRAMS ADMINISTERED THROUGH21 THE COLORADO BENEFITS MANAGEMENT SYSTEM . THE STATE22 DEPARTMENT MAY APPLY FINANCIAL ELIGIBILITY FOR MEDICAID TO23 INDIVIDUALS WHOSE GROSS INCOME PROGRAM AND ASSETS FOR24 APPLICABLE MEANS-TESTED BENEFIT PROGRAMS ARE BELOW APPLICABLE25 MEDICAID LIMITS, REGARDLESS OF DIFFERENCES IN HOUSEHOLD26 COMPOSITION AND INCOME-COUNTING RULES BETWEEN PROGRAMS OR AS27 1400 -8- SPECIFIED THROUGH FEDERAL AUTHORIZATION .1 (X) S UBJECT TO AVAILABLE APPROPRIATIONS AND UPON2 RECEIVING NECESSARY FEDERAL AUTHORIZATION , THE STATE3 DEPARTMENT MAY IMPLEMENT SUBSECTIONS (4.5)(a)(VI), (4.5)(a)(VII),4 (4.5)(a)(VIII), AND (4.5)(a)(IX) OF THIS SECTION.5 (8) (a) To ensure that the state department maintains access to6 state and federal funding provided by the federal "Families First7 Coronavirus Response Act", Pub.L. 116-127, and the federal8 "Consolidated Appropriations Act, 2023", subsections (4) and (4.5)(a)(II)9 of this section requiring the state department to disenroll an individual10 enrolled in the children's basic health plan due to the annual verification11 of income, as authorized by the centers for medicare and medicaid12 services, are suspended until June 1, 2024 JANUARY 1, 2025.13 (b) The state board may adopt rules to implement this subsection14 (8) to ensure that the state department can resume routine operations by15 June 1, 2024, that follow guidance issued by the federal centers for16 medicare and medicaid services, including terminations of eligibility, the17 processing of eligibility renewals, and the transition between medical18 assistance and children's basic health plan eligibility categories.19 (c) This subsection (8) is repealed, effective June 1, 202420 J ANUARY 1, 2025.21 SECTION 6. Safety clause. The general assembly finds,22 determines, and declares that this act is necessary for the immediate23 preservation of the public peace, health, or safety or for appropriations for24 the support and maintenance of the departments of the state and state25 institutions.26 1400 -9-