HB 25-1016
Fiscal Note
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
HB 25-1016: OCCUPATIONAL THERAPIST PRESCRIBE MED EQUIPMENT
Prime Sponsors:
Rep. Stewart K.
Sen. Michaelson Jenet
Published for: House Health & Human Services
Drafting number: LLS 25-0629
Fiscal Analyst:
Brendan Fung, 303-866-4781
brendan.fung@coleg.gov
Version: Initial Fiscal Note
Date: January 10, 2025
Fiscal note status: This fiscal note reflects the introduced bill. Due to time constraints, this analysis is
preliminary and will be updated following further review and any additional information received.
Summary Information
Overview. The bill authorizes a licensed occupational therapist to prescribe durable medical equipment.
Types of impacts. The bill is projected to affect the following areas on an ongoing basis:
State Expenditures
Appropriations. No appropriation is required.
Table 1
State Fiscal Impacts
Type of Impact
Budget Year
FY 2025-26
Out Year
FY 2026-27
State Revenue $0 $0
State Expenditures $0 $0
Transferred Funds $0 $0
Change in TABOR Refunds $0 $0
Change in State FTE 0.0 FTE 0.0 FTE
Page 2
January 10, 2025 HB 25-1016
Summary of Legislation
The bill authorizes a licensed occupational therapist to directly recommend and prescribe
durable medical equipment (DME) to a patient without requesting the prescription from a
licensed physician.
State Expenditures
Starting in FY 2025-26, the bill will minimally increase state workload in the Department of
Regulatory Agencies and other agencies, and may potentially increase Medicaid costs.
Regulation
Beginning in FY 2025-26, workload in the Department of Regulatory Agencies may increase to
make rules and conduct outreach regarding the scope of practice for licensed occupational
therapists. The bill may also minimally increase workload in the Office of Administrative Courts
in the Department of Personnel and Administration to handle any additional disciplinary
proceedings against licensed occupational therapists prescribing durable medical equipment.
This workload is expected to be minimal and no change in appropriations is required.
Medicaid
Beginning in FY 2025-26, the bill may increase Medicaid costs in the Department of Health Care
Policy and Financing to the extent that more or different DME is recommended to patients by
occupational therapists, relative to such recommendations coming only from physicians. Any
increase in costs may contribute to higher rates paid to managed care organizations under
Medicaid. This potential expenditure impact is indeterminate, but will be revised if more
information becomes available.
Effective Date
The bill takes effect 90 days following adjournment of the General Assembly sine die, assuming
no referendum petition is filed.
State and Local Government Contacts
Health Care Policy and Financing
Personnel
Regulatory Agencies
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 the General Assembly website.