Colorado 2025 2025 Regular Session

Colorado House Bill HB1213 Introduced / Fiscal Note

Filed 03/19/2025

                    HB 25-1213  
Fiscal Note 
Legislative Council Staff 
Nonpartisan Services for Colorado’s Legislature 
HB 25-1213: UPDATES TO MEDICAID  
Prime Sponsors: 
Rep. Feret 
Sen. Daugherty  
Published for: House Appropriations  
Drafting number: LLS 25-0820  
Fiscal Analyst: 
Brendan Fung, 303-866-4781 
brendan.fung@coleg.gov  
Version: First Revised Note  
Date: March 18, 2025 
Fiscal note status: This revised fiscal note reflects the introduced bill, as amended by the House Health 
and Human Services Committee. 
Summary Information 
Overview. The bill exempts small assisted living facilities from certain regulations and modifies the state 
Medicaid program. 
Types of impacts. The bill is projected to affect the following areas on an ongoing basis: 
 Minimal State Workload
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 
March 14, 2025  HB 25-1213 
 
Summary of Legislation 
The bill exempts certain assisted living facilities from compliance standards and modifies the 
state’s Medicaid program.  
Assisted Living Facilities 
The bill requires the Colorado Department of Public Health and Environment (CDPHE) to exempt 
an assisted living facility with fewer than 19 beds that has not undergone new construction or 
renovations from complying with certain facility guidelines. 
Medicaid 
The bill makes several changes to administrative, eligibility, billing, and review requirements of 
the state’s Medicaid program under the Department of Health Care Policy and Financing (HCPF), 
including:  
 requiring HCPF to establish a process to review and update the general billing manual on an 
annual basis; 
 requiring a managed care organization (MCO) to issue payment to a contracted provider 
within one year for a claim that is reprocessed after updating provider rates; 
 expanding contract requirements between HCPF and MCOs; 
 prohibiting HCPF from imposing signature requirements beyond what is required by CMS on 
a physician or practitioner who is certifying a member’s plan of care that involves physical, 
occupational, or speech therapy services; and 
 requiring HCPF to confirm and communicate the timeline for continuity of treatment for 
members receiving long-term care services that have been discontinued. 
State Expenditures 
Starting in FY 2025-26, the bill minimally increases workload in the Department of Public Health 
and Environment and the Department of Health Care Policy and Financing, as described below. 
Department Public Health and Environment 
Workload in the CDPHE will minimally increase to assist the Board of Health with rule 
modification and conduct outreach to exempted facilities. The department may require legal 
services, provided by the Department of Law, related to rulemaking and implementation. 
Concurrently, workload to conduct facility inspections may minimally decrease due to fewer 
regulatory guidelines that facilities must comply with. This workload is expected to be minimal 
and no change in appropriations is required.  Page 3 
March 14, 2025  HB 25-1213 
 
Department of Health Care Policy and Financing 
Workload in HCPF will minimally increase to update rules, publish medical loss ratio data, 
engage with members receiving long-term care services, and implement certain provisions in 
the bill. This workload is expected to be minimal and no change in appropriations is required. 
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 
Law 
Public Health and Environment  
 
 
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.