First Regular Session Seventy-fifth General Assembly STATE OF COLORADO REENGROSSED This Version Includes All Amendments Adopted in the House of Introduction LLS NO. 25-0820.01 Chelsea Princell x4335 HOUSE BILL 25-1213 House Committees Senate Committees Health & Human Services Appropriations 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 3rd Reading Unamended March 26, 2025 HOUSE Amended 2nd Reading March 25, 2025 HOUSE SPONSORSHIP Feret and Weinberg, Bacon, Bird, Boesenecker, Duran, English, Garcia, Gonzalez R., Jackson, Joseph, Lieder, Lindstedt, McCluskie, Ricks, Stewart K., Stewart R., Titone SENATE SPONSORSHIP Daugherty and Ball, 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 - definition. (3) (a) RULES ADOPTED BY THE STATE BOARD5 PURSUANT TO SUBSECTION (1) OF THIS SECTION MUST EXEMPT AN6 ASSISTED LIVING RESIDENCE WITH FE WER THAN NINETEEN BEDS FROM7 COMPLYING WITH THE FACILITY GUIDELINE INSTITUTE (FGI) GUIDELINES,8 EXCEPT IN THE CASE OF NEW CONSTRUCTION OR MAJOR RENOVATIONS. AN9 ASSISTED LIVING RESIDENCE WITH FE WER THAN NINETEEN BEDS MUST10 STILL COMPLY WITH ALL OTHER FIRE AND LOCAL BUILDING CODES AND THE11 STANDARDS OUTLINED IN THIS SECTION .12 (b) FOR PURPOSES OF SUBSECTION (3)(a) OF THIS SECTION, "MAJOR13 RENOVATIONS" MEANS ADDITIONS TO A BUILDING'S STRUCTURE OR14 1213-2- CHANGES THAT AFFECT THE STRUCTURAL INTEGRITY OF THE BUILDING .1 MAJOR RENOVATIONS DO NOT INCLUDE CHANGING THE FUNCTIONAL2 OPERATION OF A SPACE IF NO CONSTRUCTION IS COMPLETED AND THE3 FLOOR PLAN OF THE BUILDING REMAINS THE SAME . IT ALSO DOES NOT4 INCLUDE ADDING BEDS TO ACCOMMODATE MORE RESIDENTS OR UPGRADES5 TO THE HEATING OR COOLING SYSTEMS AND ELECTRICAL SYSTEMS IF6 THOSE IMPROVEMENTS DO NOT REQUIRE CONSTRUCTION . 7 SECTION 2. In Colorado Revised Statutes, add 25.5-1-135 as8 follows:9 25.5-1-135. Billing manual. U SING EXISTING RESOURCES10 ALLOCATED FOR BILLING MANUAL REVIEWS , THE STATE DEPARTMENT11 SHALL ESTABLISH A PROCESS TO REVIEW AND UPDATE THE GENERAL12 BILLING MANUAL ON AN ANNUAL BASIS , WHICH MUST ENSURE THAT THE13 GENERAL BILLING MANUAL INCLUDES ALL NECESSARY CPT CODES, OR14 PROVIDES LINKS TO THE STATE DEPARTMENT 'S LIST OF CPT CODES.15 16 SECTION 3. In Colorado Revised Statutes, 25.5-5-402, add (7.3)17 as follows:18 25.5-5-402. Statewide managed care system - rules -19 definitions. (7.3) (a) BEGINNING JANUARY 1, 2026, FOR A CLAIM THAT20 MUST BE REPROCESSED AS A RESULT OF UPDATING THE PROVIDER RATES ,21 AN MCO SHALL ISSUE PAYMENT TO THE CONTRACTED PROVIDER WITHIN22 ONE YEAR AFTER THE PROVIDER RATE IS UPDATED .23 (b) THE STATE DEPARTMENT SHALL NOTIFY THE MCOS OF ANY24 CHANGE TO THE PROVIDER RATES WITHIN SIXTY DAYS OF CHANGING THE25 PROVIDER RATES.26 SECTION 4. In Colorado Revised Statutes, add 25.5-5-427 as27 1213 -3- follows:1 25.5-5-427. Managed care entities - disclosure of payment and2 medical loss ratio - definition. (1) T HE STATE DEPARTMENT SHALL3 INCLUDE IN EACH NEW CONTRACT WITH , OR RENEWAL OF A CONTRACT4 WITH, AN MCE A PROVISION REQUIRING THE MCE TO SUBMIT TO THE5 STATE DEPARTMENT, ON AN ANNUAL BASIS, THE AMOUNT THE MCE IS6 PAID FOR DELIVERING SERVICES AND THE MCE'S MEDICAL LOSS RATIO.7 (2) THE STATE DEPARTMENT SHALL ANNUALLY PUBLISH THE8 FOLLOWING INFORMATION ON ITS WEBSITE :9 (a) THE INFORMATION RECEIVED PURSUANT TO SUBSECTION (1) OF10 THIS SECTION;11 (b) HISTORICAL MEDIAL LOSS RATIO DATA FOR EACH MCE; AND12 (c) AUDIT FINDINGS REGARDING AN MCE'S MOST RECENTLY13 COMPLETED MEDICAL LOSS RATIO AUDIT .14 (3) F OR PURPOSES OF SUBSECTION (1) OF THIS SECTION, "MEDICAL15 LOSS RATIO" MEANS THE PERCENTAGE OF PREMIUM REVENUE THAT THE16 MCE SPENDS ON HEALTH-CARE SERVICES AND QUALITY IMPROVEMENT17 ACTIVITIES.18 SECTION 5. In Colorado Revised Statutes, add 25.5-6-117 as19 follows:20 25.5-6-117. Plan of care - rehabilitation therapy -21 requirements - definition. (1) A S USED IN THE SECTION, UNLESS THE22 CONTEXT OTHERWISE REQUIRES , "PLAN OF CARE" HAS THE SAME MEANING23 AS SET FORTH IN SECTION 25.5-6-403.24 (2) T HE STATE DEPARTMENT SHALL NOT IMPOSE SIGNATURE25 REQUIREMENTS BEYOND WHAT IS REQUIRED BY THE FEDERAL CENTERS FOR26 MEDICARE AND MEDICAID SERVICES PURS UANT TO 42 CFR 409.43 ON A27 1213 -4- PHYSICIAN OR PRACTITIONER CERTIFYING A MEMBER 'S PLAN OF CARE THAT1 INVOLVES PHYSICAL THERAPY, OCCUPATIONAL THERAPY, OR SPEECH2 THERAPY SERVICES.3 SECTION 6. In Colorado Revised Statutes, add 25.5-6-118 as4 follows:5 25.5-6-118. Long-term care for members with permanent6 disability. (1) FOR A MEMBER RECEIVING SERVICES THROUGH A7 LONG-TERM CARE PROGRAM PURSUANT TO PARTS 3 TO 10 OF THIS ARTICLE8 6, IF A SERVICE THE MEMBER RECEIVES IS DISCONTINUED OR IS NO LONGER9 A COVERED SERVICE, THE STATE DEPARTMENT MUST CONFIRM THE10 TIMELINE FOR CONTINUITY OF TREATMENT WITH THE FEDERAL CENTERS11 FOR MEDICARE AND MEDICAID DURING THE TRANSITION PERIOD OF THE12 BENEFIT OR SERVICE BEING DISCONTINUED. UPON CONFIRMATION, THE13 STATE DEPARTMENT SHALL COMMUNICATE THE TIMELINE TO THE MEMBER14 IMPACTED BY THE BENEFIT OR SERVICE BEING DISCONTINUED .15 (2) THIS SECTION APPLIES TO MEMBERS WHO ARE FUNCTIONALLY16 AND FINANCIALLY ELIGIBLE TO RECEIVE LONG -TERM CARE SERVICES17 PURSUANT TO PARTS 3 TO 10 OF THIS ARTICLE 6.18 SECTION 7. In Colorado Revised Statutes, 25.5-6-2001, amend19 (2)(a), (2)(c)(II), (2)(c)(III), (3)(a), and(7)(b) as follows:20 25.5-6-2001. System of care for children and youth - federal21 authorization - leadership and implementation team - report - rules22 - definition. (2) (a) No later than November 1, 2024, the state department23 shall convene a leadership team that is responsible for the24 decision-making and oversight ADVISING AND REVIEWING THE25 DEVELOPMENT AND OPERATION of the system of care for children and26 youth who have complex behavioral health needs.27 1213 -5- (c) The leadership team has the following duties and1 responsibilities:2 (II) To oversee and advise REVIEW AND ADVISE ON the strategic3 direction of the development of the system of care; and4 (III) To provide fiscal oversight of the state department's5 development and oversight of the system of care REVIEW AND COMMENT6 ON THE STATE DEPARTMENT 'S FISCAL DEVELOPMENT AND OVERSIGHT OF7 THE SYSTEM OF CARE.8 (3) (a) No later than October 1, 2024, the state department shall9 convene an implementation team that shall create a plan UTILIZING THE10 RECOMMENDATIONS FROM THE LEADERSHIP TEAM , AS APPROPRIATE, to11 implement the system of care for children and youth who have complex12 behavioral health needs.13 (7) (b) Beginning January 2025, and each quarter thereafter, the14 state department shall report progress on the development and15 implementation of the system of care developed pursuant to this section16 to the joint budget committee, THE IMPLEMENTATION TEAM , THE17 LEADERSHIP TEAM, THE SENATE HEALTH AND HUMAN SERVICES18 COMMITTEE, AND THE HOUSE OF REPRESENTATIVES HEALTH AND HUMAN19 SERVICES COMMITTEE. THE REPORT REQUIRED BY THIS SUBSECTION (7)(b)20 MUST INCLUDE THE RATIONALE FOR ANY RECOMMENDATION FROM THE21 LEADERSHIP TEAM THAT THE DEPARTMENT ELECTS NOT TO IMPLEMENT .22 SECTION 8. Act subject to petition - effective date. This act23 takes effect at 12:01 a.m. on the day following the expiration of the24 ninety-day period after final adjournment of the general assembly; except25 that, if a referendum petition is filed pursuant to section 1 (3) of article V26 of the state constitution against this act or an item, section, or part of this27 1213 -6- act within such period, then the act, item, section, or part will not take1 effect unless approved by the people at the general election to be held in2 November 2026 and, in such case, will take effect on the date of the3 official declaration of the vote thereon by the governor.4 1213 -7-