HB 26-1377

HB 26-1377 is a Colorado bill that changes how state funding for mental health transitional living homes is counted under budget laws. Currently, when managed care entities (MCEs) receive money from the Department of Health Care Policy and Financing to pay for services at these homes, this transaction is considered as money leaving and then re-entering the state, affecting budget calculations. The bill proposes that if MCEs pass on federal or state funds directly to the Department of Human Services for these homes, it shouldn’t be counted twice in the state’s budget limits. This change affects how much funding can be allocated without needing voter approval under Colorado's Taxpayer Bill of Rights (TABOR). Since the bill has been signed, this new rule is now in effect and impacts the budgeting process for mental health services funded through Medicaid.

Official Summary

The act establishes that if a managed care entity receives federal funds or state money from the department of health care policy and financing and pays those funds or that money to the department of human services, the funds or money received by the department of human services is not included in the calculation of state fiscal year spending.(Note: This summary applies to this bill as enacted.)

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