SB 25-270

Senate Bill 25-270, which has been signed into law, changes how nursing facilities and intermediate care facilities for people with intellectual disabilities are funded in Colorado. Starting May 1, 2025, these facilities will pay new fees to the Colorado Healthcare Affordability and Sustainability Enterprise (CHASE) instead of the current provider fees. In return, CHASE will offer services that help maintain or increase reimbursement rates and support quality care. This change affects nursing homes and intermediate care facilities but doesn't count towards the state's spending limits due to its special status under the Taxpayer’s Bill of Rights. The bill also allocates specific funding for these new fees in the upcoming fiscal years.

Official Summary

The act repeals the existing nursing facility provider fee and intermediate care facility service fee, effective May 1, 2025, and provides that, beginning on May 1, 2025, and for each state fiscal year thereafter, the Colorado healthcare affordability and sustainability enterprise (CHASE) within the department of health care policy and financing (HCPF) will charge and collect a new healthcare affordability and sustainability nursing facility provider fee and a new healthcare affordability and sustainability intermediate care facility fee that function similarly to the repealed fees. The act creates a facility provider fee enterprise support board within CHASE for the purpose of supporting the existing enterprise with the implementation of the healthcare affordability and sustainability nursing facility provider fee and the healthcare affordability and sustainability intermediate care facility fee. In exchange for payment of the healthcare affordability and sustainability nursing facility provider fee, CHASE will provide certain business services to nursing facility providers to sustain or increase reimbursement rates and make supplemental medicaid payments to nursing facility providers. In exchange for payment of the healthcare affordability and sustainability intermediate care facility fee, CHASE will provide certain business services to intermediate care facility providers for individuals with intellectual disabilities for the purposes of maintaining the quality and continuity of services provided by intermediate care facilities for individuals with intellectual disabilities. Because CHASE is an enterprise for purposes of the Taxpayer's Act of Rights, its revenue does not count against the state fiscal year spending limit. The act also makes conforming amendments and, for clarity, renames the existing healthcare affordability and sustainability fee and healthcare affordability and sustainability fund to be the healthcare affordability and sustainability hospital provider fee and the healthcare affordability and sustainability hospital provider fee cash fund. For the 2025-26 state fiscal year, $62,986,221 is appropriated from the healthcare affordability and sustainability nursing facility provider fee cash fund to HCPF and $2,150,281 is appropriated from the healthcare affordability and sustainability intermediate care facility fee cash fund to HCPF. The act also decreases in corresponding amounts appropriations to HCPF from other cash funds and modifies appropriations to HCPF for the 2024-25 state fiscal year. (Note: This summary applies to this bill as enacted.)

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