SB 25-2

Senate Bill 25-2, which has been signed into law and will take effect on August 26, 2025, requires the Department of Health Care Policy and Financing (HCPF) to use only state funds to pay for services provided by certain health care entities that are not eligible for federal funding from Medicare or Medicaid. These entities can receive state-only payments as long as they do not qualify for reimbursement through the federal Centers for Medicare and Medicaid Services (CMS) at the time of service delivery. This bill impacts healthcare providers who serve patients without access to federal funds, ensuring they have a source of state financial support starting in 2025.

Official Summary

On and after July 1, 2025, the act requires the department of health care policy and financing (HCPF) to use only state funds to reimburse entities that provide covered services and that are prohibited from receiving reimbursement from the federal centers for medicare and medicaid services (CMS); except that an entity is not eligible to receive state-only funds from HCPF if the entity is eligible for reimbursement from CMS at the time the services are provided.APPROVED by Governor August 26, 2025EFFECTIVE August 26, 2025(Note: This summary applies to this bill as enacted.)

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