SB 22-235

Senate Bill 22-235 in Colorado aims to improve how public and medical assistance programs are run by having the state departments of Human Services and Health Care Policy work with counties to assess current practices and suggest improvements. The bill requires these agencies to hire outside experts to evaluate the system, create a funding model for county administration of these programs starting from 2025-26, and submit regular reports on their progress. This will help ensure that counties get appropriate funding to manage public assistance effectively. The bill has been signed into law, meaning it is now official state policy and implementation can begin according to the outlined schedule.

Official Summary

The act requires the department of human services (DHS) and the department of health care policy and financing (HCPF), in consultation with county departments of human and social services (county departments), to develop a scope of work for a comprehensive assessment of the best practices related to the administration of public and medical assistance programs. The act requires DHS to enter into an agreement with a third party to conduct the comprehensive assessment, evaluate existing practices for the administration of public and medical assistance programs, and make recommendations related to administration of public and medical assistance programs and ongoing evaluation of the public and medical assistance program system. On or before July 1, 2023, DHS is required to submit the results of the comprehensive assessment to HCPF, county departments, and the joint budget committee. On or before November 1, 2023, DHS is required to submit a fiscal impact analysis of implementing the third party's recommendations to the joint budget committee. Following completion of the comprehensive assessment, and no later than January 1, 2024, DHS is required to enter into an agreement with an outside entity to develop a public and medical assistance programs funding model (funding model) to determine the amount of money necessary to fund county administration of certain public assistance programs overseen by DHS and HCPF. On or before November 1, 2024, DHS is required to deliver the results of the funding model for fiscal year 2025-26 to HCPF, county departments, and the joint budget committee. The act requires DHS to enter into an agreement with an outside entity to annually update and modify the funding model and requires DHS to submit the results of the funding model to HCPF, county departments, and the joint budget committee by November 1 of each year. Beginning with fiscal year 2025-26, the joint budget committee shall use the results of the funding model to inform its decisions regarding the amount of the appropriation to DHS and HCPF to fund county administration of public assistance programs. DHS and HCPF shall allocate money to counties for public assistance program administration in accordance with the results of the funding model. The act requires DHS and HCPF to submit an annual report to the joint budget committee on the funding model. The act appropriates $80,000 to HCPF for administration related to office of economic security - medicaid funding, of which $48,120 is from the general fund and $31,880 is from the healthcare affordability and sustainability fee cash fund. The act also appropriates $280,000 to DHS for administration, of which $120,000 is from the general fund and $160,000 is from reappropriated funds received from HCPF. (Note: This summary applies to this bill as enacted.)

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