HB 23-1269

HB 23-1269 is a Colorado bill that aims to improve care for children and youth with high behavioral or mental health needs. It requires managed care entities to pay at least the state-established rates for services needed to stabilize these young patients, and it creates a fund to provide additional resources to providers who treat such cases. The bill also sets up reporting requirements for hospitals and child welfare departments to track how many children are boarding in hospitals or staying in hotels due to lack of appropriate treatment facilities. Signed into law on June 5, 2023, the act is now effective and will help address issues related to the care and placement of high-needs youth in Colorado.

Official Summary

The act requires the department of health care policy and financing to analyze how directed payment authority can be used as part of a comprehensive plan to facilitate an adequate network of services for children and youth by requiring each managed care entity to pay no less than state department-established fee schedule rates for services needed to promote clinical stabilization. The act creates the high-acuity treatment and services cash fund (cash fund). The act authorizes the department of human services (CDHS) to retain any unspent money appropriated in fiscal year 2022-23 and 2023-24 from the general fund for counties during the initial allocations for the administration of child welfare services, core services, or child welfare staffing. On June 30, 2023, and June 30, 2024, the act requires the state treasurer to transfer any money retained to the cash fund. The act requires CDHS to expend money from the cash fund to provide additional resources to licensed providers to help remove barriers that providers face in serving children and youth whose behavioral or mental health needs require services and treatment that exceed capacity of the established daily rates. The cash fund repeals July 1, 2025. No later than July 1, 2023, the act requires CDHS to form a working group to make recommendations about developing an incentive funding pool pilot program to incentivize residential treatment providers to accept and treat children and youth who have high-acuity behavioral health needs to appropriate treatment and placement. The act requires the behavioral health administration (BHA) to consult with a working group to help develop the performance monitoring system framework that addresses the minimum performance standards for treatment of children and youth, which must include measures of accountability for children and youth who are boarding or in extended stay . Beginning September 1, 2023, and each quarter thereafter until October 1, 2024, the act requires each hospital to report information to the BHA on the total number of children and youth patients who were boarding or had extended stay in the previous quarter; if known, how many children and youth who were boarding or had extended stay and were in county custody at the time; and, for patients who were discharged during the quarter, where the patients were discharged to. Beginning September 1, 2023, and each quarter thereafter until October 1, 2024, the act requires CDHS to report information to the BHA on the total number of children and youth in the custody of, or who had involvement with, a county department of human or social services who spent time at least overnight in a hotel or a county department office as a stopgap setting. No later than September 1, 2023, and each quarter thereafter until October 1, 2024, the act requires the BHA to report aggregated and de-identified information submitted to the BHA to the working group. The act requires CDHS to develop a capacity plan for whenever a residential treatment facility for children and youth closes or has a substantial change in operation. The act appropriates $5,900,000 from the cash fund to CDHS for use by the division of child welfare for high-acuity treatment services. Any money remaining from the appropriation prior to July 1, 2024, is further appropriated to CDHS for fiscal year 2024-25. APPROVED by Governor June 5, 2023 EFFECTIVE June 5, 2023 (Note: This summary applies to this bill as enacted.)

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