HB 25-1300
Fiscal Note
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
HB 25-1300: WORKERS' COMP BENEFITS PROOF OF ENTITLEMENT
Prime Sponsors:
Rep. Willford
Sen. Kipp
Published for: House Business Affairs & Labor
Drafting number: LLS 25-0319
Fiscal Analyst:
Josh Abram, 303-866-3561
josh.abram@coleg.gov
Version: Initial Fiscal Note
Date: March 13, 2025
Fiscal note status: The fiscal note reflects the introduced bill.
Summary Information
Overview. The bill makes modifications to the provision of medical benefits under the state’s workers’
compensation statute.
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
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March 13, 2025 HB 25-1300
Summary of Legislation
Under current law, the Division of Workers’ Compensation in the Colorado Department of Labor
and Employment (CDLE) adopts utilization standards for the delivery of medical benefits for
workers’ compensation claims. This bill requires that an employer or the employer’s insurer use
the division’s utilization standards when responding to a request for authorization from a
treating physician. If the employer or insurer fails to act in accordance with the standards, the
division may deem the physician’s services as reasonable and necessary, and require payment
for the services by the employer or the employer’s insurer.
Under current law, a claimant in a workers’ compensation claim has the burden of proving
entitlement to benefits. This bill requires that the claimant’s employer or insurer bear the burden
of proving that medical treatment recommended by an authorized physician is not reasonable,
necessary, or related to the injury.
The bill repeals the requirement that an employer provide a list of health care providers from
which an injured worker may select to attend to an injury, and repeals the related provisions
with respect to geographic location of providers and requirements when the employer is a
health care provider that could treat the injury “in house.” Instead, this bill requires that, within
seven days of being notified of a workplace injury, an employer or insurer notify the injured
employee of the employee’s right to designate a treating physician and where to access the list
of Level I and Level II accredited physicians maintained by the CDLE. If the employee fails to
designate a primary physician, the employer or insurer may select from the list of accredited
physicians.
Background
The State Office of Risk Management in the Department of Personnel and Administration (DPA)
pays workers' compensation benefits to state employees. The state is self-insured for workers'
compensation claims. Annually, the office’s actuary projects the state's total workers'
compensation needs and estimates the allocation for each agency as a percent of the total.
The Division of Workers’ Compensation in the CDLE enforces state law related to workers’
compensation, which includes conducting prehearing conferences, auditing admissions filed by
insurance carriers or their third-party adjusters, and overseeing the Division of Independent
Medical Examination (DIME) program.
State Expenditures
The bill is expected to impact workload in several state agencies, as discussed below.
Department of Labor and Employment
CDLE will update its policies and procedures to align with the bill. No change in appropriations
is required. Page 3
March 13, 2025 HB 25-1300
Department of Personnel and Administration
The bill may impact workload and costs in the State Office of Risk Management and in the
Office of Administrative Courts (OAC). These impacts are assumed to be absorbable initially, but
will be addressed through the annual budget process as needed in future fiscal years.
The state’s risk management pool may experience higher costs if injured workers choose
medical providers that offer expanded medical services and treatment, increasing costs for
compensation of injured state employees. If these costs require an increase in agency
contributions to the risk pool, this be addressed through total compensation as part of the
annual budget process.
The OAC may have additional caseload from increased litigation if insurers dispute new
treatments and diagnostic testing from medical professionals chosen by the employee. Initial
caseload increases are assumed to be absorbable.
Judicial Department
Although most disputes related to state workers’ compensation are handled by the OAC in DPA,
there is an appellate process through the courts. Parties may request judicial review once other
legal avenues are exhausted. Assuming most cases are resolved through administrative courts,
the bill is expected to have a minimal impact on the trial courts.
Effective Date
The bill takes effect January 1, 2026, assuming no referendum petition is filed, and applies to
workers’ compensation claims filed on or after that date.
State and Local Government Contacts
Judicial
Labor
Law
Personnel
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.