First Regular Session Seventy-fifth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 25-0820.01 Chelsea Princell x4335 HOUSE BILL 25-1213 House Committees Senate Committees Health & Human Services A BILL FOR AN ACT C ONCERNING CHANGES TO THE MEDICAL ASSISTANCE PROGRAM .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 .) The bill exempts an assisted living residence with fewer than 19 beds that has not undergone new construction or renovations and that complies with the standards for assisted living residences from complying with facility guidelines adopted by the state board of health. The bill requires the department of health care policy and financing (state department) to follow the standards set by the federal centers for medicare and medicaid when updating rules. The state department must establish a process for reviewing and HOUSE SPONSORSHIP Feret, SENATE SPONSORSHIP Daugherty, 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. updating the general billing manual on an annual basis and ensure that the general billing manual includes all necessary CPT codes. Beginning January 1, 2026, for claims that must be reprocessed as a result of updating the provider rates, the bill requires a managed care organization to issue payment to a contracted provider within one year after the provider rate is updated. The bill requires the state department to include in each new contract with, or renewal of a contract with, a managed care entity (MCE) a provision requiring the MCE to submit to the state department, on an annual basis, the amount the MCE is paid and the MCE's medical loss ratio. The state department is required to publish this information on the state department's website on an annual basis. The bill prohibits the state department from imposing signature requirements on a physician or practitioner certifying a medicaid member's (member) plan of care that involves physical therapy or occupational therapy. The bill prevents a member receiving home- and community-based services from losing the services the member currently receives if the member's disability and need for services have not changed in the preceding 3 years. Be it enacted by the General Assembly of the State of Colorado:1 SECTION 1. In Colorado Revised Statutes, 25-27-104, add (3)2 as follows:3 25-27-104. Minimum standards for assisted living residences4 - rules. (3) R ULES ADOPTED BY THE STATE BOARD PURSUANT TO5 SUBSECTION (1) OF THIS SECTION MUST EXEMPT AN ASSISTED LIVING6 RESIDENCE WITH FEWER THAN NINETEEN BEDS THAT HAS NOT UNDERGONE7 NEW CONSTRUCTION OR RENOVATIONS AND THAT COMPLIES WITH THE8 STANDARDS FOR ASSISTED LIVING RESIDENCES OUTLINED IN SECTION9 25-27-104 FROM COMPLYING WITH FACILITY GUIDELINES ADOPTED BY THE10 STATE BOARD.11 SECTION 2. In Colorado Revised Statutes, 25.5-1-108, add (1.5)12 as follows:13 25.5-1-108. Executive director - rules. (1.5) T HE EXECUTIVE14 HB25-1213-2- DIRECTOR SHALL ADOPT THE STANDARDS SET BY THE FEDERAL CENTERS1 FOR MEDICARE AND MEDICAID SERVICES WHEN UPDATING EXISTING RULES2 AND ENSURE UPDATES AND CHANGES TO THE RULES ARE EASILY3 IDENTIFIABLE.4 SECTION 3. In Colorado Revised Statutes, add 25.5-1-135 as5 follows:6 25.5-1-135. Billing manual. U SING EXISTING RESOURCES7 ALLOCATED FOR BILLING MANUAL REVIEWS , THE STATE DEPARTMENT8 SHALL ESTABLISH A PROCESS TO REVIEW AND UPDATE THE GENERAL9 BILLING MANUAL ON AN ANNUAL BASIS , WHICH MUST ENSURE THAT THE10 GENERAL BILLING MANUAL INCLUDES ALL NECESSARY CPT CODES.11 SECTION 4. In Colorado Revised Statutes, 25.5-1-303, add (10)12 as follows:13 25.5-1-303. Powers and duties of the board - scope of authority14 - rules - repeal. (10) T HE BOARD SHALL ADOPT THE STANDARDS SET BY15 THE FEDERAL CENTERS FOR MEDICARE AND MEDICAID SERVICES WHEN16 UPDATING EXISTING RULES AND ENSURE UPDATES AND CHANGES TO THE17 RULES ARE EASILY IDENTIFIABLE.18 SECTION 5. In Colorado Revised Statutes, 25.5-5-402, add19 (7.5)(c) as follows:20 25.5-5-402. Statewide managed care system - rules -21 definitions. (7.5) (c) B EGINNING JANUARY 1, 2026, FOR A CLAIM THAT22 MUST BE REPROCESSED AS A RESULT OF UPDATING THE PROVIDER RATES ,23 AN MCO SHALL ISSUE PAYMENT TO THE CONTRACTED PROVIDER WITHIN24 ONE YEAR AFTER THE PROVIDER RATE IS UPDATED .25 SECTION 6. In Colorado Revised Statutes, add 25.5-5-427 as26 follows:27 HB25-1213 -3- 25.5-5-427. Managed care entities - disclosure of payment and1 medical loss ratio - definition. (1) T HE STATE DEPARTMENT SHALL2 INCLUDE IN EACH NEW CONTRACT WITH , OR RENEWAL OF A CONTRACT3 WITH, AN MCE A PROVISION REQUIRING THE MCE TO SUBMIT TO THE4 STATE DEPARTMENT, ON AN ANNUAL BASIS, THE AMOUNT THE MCE IS5 PAID FOR DELIVERING SERVICES AND THE MCE'S MEDICAL LOSS RATIO.6 (2) T HE STATE DEPARTMENT SHALL PUBLISH THE INFORMATION7 RECEIVED PURSUANT TO SUBSECTION (1) OF THIS SECTION ON ITS WEBSITE8 ON AN ANNUAL BASIS.9 (3) F OR PURPOSES OF SUBSECTION (1) OF THIS SECTION, "MEDICAL10 LOSS RATIO" MEANS THE PERCENTAGE OF PREMIUM REVENUE THAT THE11 MCE SPENDS ON HEALTH-CARE SERVICES AND QUALITY IMPROVEMENT12 ACTIVITIES.13 SECTION 7. In Colorado Revised Statutes, add 25.5-6-117 as14 follows:15 25.5-6-117. Plan of care - physical therapy and occupational16 therapy - requirements - definition. (1) A S USED IN THE SECTION,17 UNLESS THE CONTEXT OTHERWISE REQUIRES , "PLAN OF CARE" HAS THE18 SAME MEANING AS SET FORTH IN SECTION 25.5-6-403.19 (2) T HE STATE DEPARTMENT SHALL NOT IMPOSE SIGNATURE20 REQUIREMENTS BEYOND WHAT IS REQUIRED BY THE FEDERAL CENTERS FOR21 MEDICARE AND MEDICAID SERVICES PURS UANT TO 42 CFR 409.43 ON A22 PHYSICIAN OR PRACTITIONER CERTIFYING A MEMBER 'S PLAN OF CARE THAT23 INVOLVES PHYSICAL THERAPY OR OCCUPATIONAL THERAPY SERVICES .24 SECTION 8. In Colorado Revised Statutes, add 25.5-6-118 as25 follows:26 25.5-6-118. Long-term care for members with permanent27 HB25-1213 -4- disability. (1) I F A MEMBER RECEIVES SERVICES THROUGH A LONG -TERM1 CARE PROGRAM PURSUANT TO PARTS 3 TO 10 OF THIS ARTICLE 6 AND THE2 MEMBER'S DISABILITY OR NEED FOR SERVICES HAS NOT CHANGED IN THE3 PRECEDING THREE YEARS, THE STATE DEPARTMENT MUST CONTINUE TO4 PROVIDE THE SERVICES THE MEMBER CURRENTLY RECEIVES AND IS5 ELIGIBLE FOR TO THE MEMBER UNLESS THERE IS A CHANGE IN THE6 MEMBER'S DISABILITY OR THE SERVICES THE MEMBER CURRENTLY7 RECEIVES ARE NO LONGER NEEDED. THIS SUBSECTION (1) APPLIES EVEN IF8 THE STATE DEPARTMENT DISCONTINUES THOSE SERVICES FOR A NEWLY9 ELIGIBLE MEMBER.10 (2) T HIS SECTION DOES NOT LIMIT THE STATE DEPARTMENT 'S11 ABILITY TO INCREASE OR DECREASE THE SERVICES THE MEMBER MAY12 RECEIVE IF A MEMBER'S DISABILITY WARRANTS AN INCREASE OR DECREASE13 IN SERVICES TO ADEQUATELY MEET THE MEMBER 'S NEEDS.14 (3) T HIS SECTION APPLIES TO MEMBERS WHO ARE FUNCTIONALLY15 AND FINANCIALLY ELIGIBLE TO RECEIVE LONG -TERM CARE SERVICES16 PURSUANT TO PARTS 3 TO 10 OF THIS ARTICLE 6.17 SECTION 9. Act subject to petition - effective date. This act18 takes effect at 12:01 a.m. on the day following the expiration of the19 ninety-day period after final adjournment of the general assembly; except20 that, if a referendum petition is filed pursuant to section 1 (3) of article V21 of the state constitution against this act or an item, section, or part of this22 act within such period, then the act, item, section, or part will not take23 effect unless approved by the people at the general election to be held in24 November 2026 and, in such case, will take effect on the date of the25 official declaration of the vote thereon by the governor.26 HB25-1213 -5-