First Regular Session Seventy-fifth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 25-0194.01 Anna Petrini x5497 SENATE BILL 25-084 Senate Committees House Committees Health & Human Services A BILL FOR AN ACT C ONCERNING THE ADEQUACY OF THE INFUSION PHARMACY NETWORK101 SUPPLYING PARENTERAL NUTRI TION TO MEDICAID MEMBERS .102 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 .) Infusion pharmacies supply medicaid members with parenteral nutrition, which provides patients with essential nutrients through an intravenous infusion. The bill requires the state department of health care policy and financing (state department) to ensure policies and reimbursement levels for infusion pharmacies for the preparation and dispensing of parenteral SENATE SPONSORSHIP Mullica and Simpson, HOUSE SPONSORSHIP Bradfield and Rydin, 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. nutrition are sufficient to encourage an adequate level of market participation among infusion pharmacies. The bill requires the state department to annually report on the adequacy of the infusion pharmacy network that supplies parenteral nutrition to medicaid members. Be it enacted by the General Assembly of the State of Colorado:1 SECTION 1. Legislative declaration. (1) The general assembly2 finds and declares that:3 (a) Parenteral nutrition is a feeding method that bypasses the4 gastrointestinal tract and delivers nutrition directly into a patient's veins.5 Parenteral nutrition is the only way for some patients with significant6 feeding and digestion disabilities to survive. Children who need7 parenteral nutrition may need it their entire lives.8 (b) Because parenteral nutrition is highly regulated and specially9 formulated for each individual patient, it is expensive to produce and10 store, according to data from the American Society for Parenteral and11 Enteral Nutrition. Infusion pharmacies that make parenteral nutrition and12 other in-home infusion medications must dedicate time, training, and13 facilities to their formulation. Infusion pharmacies must produce14 parenteral nutrition daily, with frequent formulation changes, and must15 ensure that the parenteral nutrition meets all safety and quality16 regulations.17 (c) According to recent data from the American Society for18 Parenteral and Enteral Nutrition, because of recent financial pressures,19 many infusion pharmacies have stopped supplying parenteral nutrition20 across the nation, particularly for children. As a result, medical providers21 spend more time locating infusion pharmacies that will agree to serve the22 medical providers' patients, who risk losing access to medically necessary23 SB25-084-2- and life-saving parenteral nutrition treatment.1 (d) Federal law establishes early and periodic screening,2 diagnosis, and treatment requirements as the cornerstone medicaid health3 coverage for children. Pursuant to 42 U.S.C. sec. 1396 and sec. 1396d4 (r)(5), children enrolled in medicaid are eligible for early and periodic5 screening, diagnosis, and treatment benefits. As a result, the state must6 ensure that children enrolled in medicaid have timely access to medically7 necessary health care in the most appropriate setting.8 (e) It is not clear if the medicaid reimbursement methodologies9 that are currently in place in Colorado are sufficient to cover the extensive10 costs of producing parenteral nutrition and other specialty11 pharmaceuticals.12 (2) Therefore, the general assembly declares that it is necessary to13 ensure that Colorado medicaid members have access to an adequate14 network of infusion pharmacies supplying parenteral nutrition.15 SECTION 2. In Colorado Revised Statutes, add 25.5-5-519 as16 follows:17 25.5-5-519. Pharmacy reimbursement - parenteral nutrition18 - report - definitions. (1) A S USED IN THIS SECTION, UNLESS THE19 CONTEXT OTHERWISE REQUIRES :20 (a) "I NFUSION PHARMACY" MEANS A PHARMACY THAT PREPARES21 AND DISPENSES A SOLUTION THAT INCLUDES PARENTERAL NUTRITION FOR22 DIRECT ADMINISTRATION INTO A PATIENT'S BLOODSTREAM. THE SOLUTION23 MAY CONTAIN MEDICATIONS OR OTHER TREATMENTS AND MAY BE24 ADMINISTERED IN A PATIENT'S HOME OR IN A HEALTH-CARE FACILITY.25 (b) "P ARENTERAL NUTRITION" MEANS A FORM OF NUTRITIONAL26 SUPPORT THAT PROVIDES A PATIENT WITH NEEDED NUTRIENTS , INCLUDING,27 SB25-084 -3- AT A MINIMUM, CARBOHYDRATES, AMINO ACIDS, AND LIPIDS, THROUGH AN1 INTRAVENOUS INFUSION.2 (2) T HE STATE DEPARTMENT SHALL ENSURE POLICIES AND3 REIMBURSEMENT LEVELS FOR INFUSION PHARMACIES FOR THE4 PREPARATION AND DISPENSING OF PARENTERAL NUTRITION ARE5 SUFFICIENT TO ENCOURAGE AN ADEQUATE LEVEL OF MARKET6 PARTICIPATION AMONG INFUSION PHARMACIES . AN ADEQUATE LEVEL OF7 MARKET PARTICIPATION PROVIDES A MEMBER WHO NEEDS PARENTERAL8 NUTRITION A CHOICE BETWEEN AT LEAST TWO INFUSION PHARMACIES ,9 REGARDLESS OF THE MEMBER 'S AGE OR DURATION OF NEED.10 (3) N OTWITHSTANDING SECTION 24-1-136 (11)(a)(I), ON OR11 BEFORE NOVEMBER 1, 2025, AND ON OR BEFORE EVERY NOVEMBER 112 THEREAFTER, THE STATE DEPARTMENT SHALL , WITHIN EXISTING13 APPROPRIATIONS, REPORT IN ITS PRESENTATION TO THE JOINT BUDGET14 COMMITTEE AND ITS "SMART ACT" HEARING HELD PURSUANT TO15 SECTION 2-7-203 ON:16 (a) T HE TOTAL NUMBER AND GEOGRAPHIC DISTRIBUTION OF17 INFUSION PHARMACIES THROUGHOUT COLORADO THAT PROVIDE18 PARENTERAL NUTRITION TO MEMBERS ;19 (b) S EPARATE DATA ON THE PARENTERAL NUTRITION NEEDS OF20 ADULT AND CHILD MEMBERS AND THE SUFFICIENCY OF THE INFUSION21 PHARMACY NETWORK TO SERVE EACH ; AND22 (c) A NY REGULATORY OR REIMBURSEMENT CHANGES THE STATE23 DEPARTMENT HAS UNDERTAKEN TO ENCOURAGE AN ADEQUATE LEVEL OF24 MARKET PARTICIPATION AMONG INFUSION PHARMACIES TO MEET THE25 PARENTERAL NUTRITION NEEDS OF MEMBERS .26 SECTION 3. Act subject to petition - effective date. This act27 SB25-084 -4- takes effect at 12:01 a.m. on the day following the expiration of the1 ninety-day period after final adjournment of the general assembly; except2 that, if a referendum petition is filed pursuant to section 1 (3) of article V3 of the state constitution against this act or an item, section, or part of this4 act within such period, then the act, item, section, or part will not take5 effect unless approved by the people at the general election to be held in6 November 2026 and, in such case, will take effect on the date of the7 official declaration of the vote thereon by the governor.8 SB25-084 -5-