HB 25-1026 Fiscal Note Legislative Council Staff Nonpartisan Services for Colorado’s Legislature HB 25-1026: REPEAL COPAYMENT FOR DOC INM ATE HEALTH CARE Prime Sponsors: Rep. Carter; Garcia Published for: House Judiciary Drafting number: LLS 25-0611 Fiscal Analyst: Aaron Carpenter, 303-866-4918 aaron.carpenter@coleg.gov Version: Initial Fiscal Note Date: January 15, 2025 Fiscal note status: This fiscal note reflects the introduced bill. Summary Information Overview. The bill prohibits the DOC from charging copayments and late fees for medical services. Types of impacts. The bill is projected to affect the following areas on an ongoing basis: State Revenue State Expenditures TABOR Refunds Appropriations. For FY 2025-26, the bill requires a General Fund appropriation of $157,179 to the Department of Corrections and a cash fund reduction in the same amount. Table 1 State Fiscal Impacts Type of Impact Budget Year FY 2025-26 Out Year FY 2026-27 State Revenue -$157,179 -$157,179 State Expenditures 1 No net change No net change Transferred Funds $0 $0 Change in TABOR Refunds -$157,179 -$157,179 Change in State FTE 0.0 FTE 0.0 FTE 1 The bill requires in a refinancing of cash fund expenditures to the General Fund, resulting in no net change in total expenditures. Fund sources for these impacts are shown in the tables below. Page 2 January 15, 2025 HB 25-1026 Table 1A State Revenue Fund Source Budget Year FY 2025-26 Out Year FY 2026-27 General Fund $0 $0 Cash Funds -$157,179 -$157,179 Total Revenue -$157,179 -$157,179 Table 1B State Expenditures Fund Source Budget Year FY 2025-26 Out Year FY 2026-27 General Fund $157,179 $157,179 Cash Funds -$157,179 $157,179 Total Expenditures $0 $0 Total FTE 0.0 FTE 0.0 FTE Summary of Legislation Currently, state law permits the Department of Corrections (DOC) to charge inmates a copay for health services and caps the copay amount to $5. This bill repeals this authority and prohibits the DOC from charging copayments or late fees for any medical service. Background According to DOC Rule 700-30, all offenders have access to health care regardless of their ability to pay, but the department does charge: a $5 copay for self-declared emergencies; a $3 copay (which may be waived for chronic conditions) for offender-initiated medical appointments, dental visits, and optometry services; and a $3 no-show fee when an offender fails to attend or properly cancel a scheduled appointment, or when an offender refuses an appointment. The policy also provides a range of services where a co-pay is not charged, such as for routine treatment orders, medical conditions related to a state or national declared emergency, lab work and x-rays, dialysis, end-of-life care, and infirmary admission, among others. Page 3 January 15, 2025 HB 25-1026 State Revenue Starting in FY 2025-26, cash fund revenue to the DOC will decrease by an estimated $157,179 per year. This represents the current amount of copayments and late fees collected by the DOC. This revenue is subject to the state’s TABOR limit. State Expenditures Starting in FY 2025-26, the bill decreases state cash fund expenditures from copayments by $157,179 and increases General Fund expenditures by the same amount. General Fund costs will pay for the portion of medical services costs that are currently covered using copayments and late fees paid by offenders. In addition, the removal of late fees may increase the number of appointment no-shows, which may create scheduling delays. TABOR Refunds The bill is expected to decrease the amount of state revenue required to be refunded to taxpayers by $157,179 per year. This estimate assumes the December 2024 LCS revenue forecast. A forecast of state revenue subject to TABOR is not available beyond FY 2026-27. Because TABOR refunds are paid from the General Fund, decreased cash fund revenue will increase the amount of General Fund available to spend or save. Effective Date The bill takes effect upon signature of the Governor, or upon becoming law without his signature. State Appropriations For FY 2025-26, the bill requires the following appropriation adjustments to the Department of Corrections: a decrease of $157,179 in cash funds from the Medical Services Subprogram Personal Services line; and an increase of $157,179 from the General Fund. State and Local Government Contacts Corrections 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.