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.