ColoradoSB25-2702025 Regular SessionSenateWALLET

Enterprise Nursing Facility Provider Fees

Sponsored By: Emily Sirota (Democratic), Jeff Bridges (Democratic), Judy Amabile (Democratic), Shannon Bird

Signed by Governor

State Revenue & BudgetHealth Care & Health Insurance

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Bill Overview

Analyzed Economic Effects

11 provisions identified: 4 benefits, 3 costs, 4 mixed.

Medicaid payments continue during facility receivership

When a long-term health-care facility is in receivership, the state health department and Enterprise must reimburse its receiver for Medicaid residents. This supports Medicaid care while the receiver runs the facility. The money goes to the receiver, not directly to residents. The provision sets no household payment amount.

Children’s continuous Medicaid coverage faces cuts

The State Board can end the specified continuous-enrollment protection for children through a rule. It can act only when provider-fee money and federal matches cannot fully fund required uses. The board must first receive recommendations from the Enterprise. The law authorizes this change; it does not automatically end children’s continuous coverage.

Medicaid buy-in coverage faces possible cuts

The law allows cuts to two Medicaid buy-in eligibility groups when provider-fee money and federal matches cannot fund required uses. The State Board must first receive Enterprise recommendations and adopt a rule. For the disability buy-in group, it can cut benefits, lower the income limit below 450% of federal poverty, or end eligibility. For the group under section 25.5-5-206, it can also cut benefits, lower the income limit, or end eligibility. These cuts are authorized, not automatic.

Nursing facility bills cannot itemize fees

Nursing facilities cannot list any part of the provider fee as a separate charge on billing statements. This is a billing protection, not a limit on overall prices. The rule does not prohibit facilities from including their costs in other charges.

Facility fees stop without federal matches

The Enterprise must stop collecting an affected facility fee when federal matching authority changes or ends and matching funds become unavailable. This protection covers nursing facilities and intermediate care facilities for people with intellectual disabilities. The Enterprise must return cash-fund money that is not subject to federal matching to the affected providers.

Nursing facilities get faster Medicaid payments

Beginning May 1, 2025, nursing facility fees and federal matches support sustained or increased Medicaid reimbursements and supplemental payments. The Enterprise must make nursing facility reimbursements and supplemental payments within 15 days after receiving a provider’s fee. Providers receive a fee-funded supplement when the statewide average daily rate, after patient payments, exceeds the General Fund share. Nursing and intermediate care facility fees must add to, not replace, General Fund support, with specified daily-rate and supplemental-payment exceptions. The department must secure federal matches for payments under sections 25.5-4-402.4(5.5)(b) and 25.5-6-208 before pursuing matches under section 25.5-6-210.

Nursing facility payments can face shortfalls

If nursing facility fee revenue cannot cover all authorized uses, the legislature does not have to fill the gap with General Fund money. The Enterprise can reduce or suspend supplemental Medicaid payments after consulting the state health department. It must follow the law’s payment priorities. This provision does not require residents to pay the shortfall.

Care facilities file confidential fee reports

Nursing facilities and intermediate care facilities for people with intellectual disabilities must submit reports used to calculate their fees. Nursing facilities must report annual days of care provided to non-Medicare residents. The submitted information is confidential and is not a public record. The Enterprise can release report summaries, but the underlying information remains protected.

Disability care facilities pay fees, receive reimbursements

Beginning May 1, 2025, the Enterprise can charge privately owned and state-run intermediate care facilities for people with intellectual disabilities. The State Board sets the fee, capped at 5% of covered facilities’ combined annual costs or the federal limit, whichever is lower. Revenue pays administration and supplemental facility reimbursements, subject to annual appropriations and federal matching rules. Supplemental payments are calculated beginning May 1, 2025, and each July 1 afterward, in consultation with the state health department. The law removes the department’s former fee authority and transfers the old fund balance to the successor fund on June 30, 2025.

Nursing facility fees shift to Enterprise

Beginning May 1, 2025, the law authorizes the state’s Healthcare Affordability and Sustainability Enterprise to charge nursing facility fees. Charging and collection require federal approval of a Medicaid plan amendment; the State Board sets fees within federal limits. With federal approval, exemptions can cover facilities with 45 or fewer licensed beds, qualifying retirement communities, and specified state-operated or hospital-based facilities. The Enterprise can also lower some fees to meet federal requirements. The old fund balance transfers to the new nursing facility cash fund on June 30, 2025; the former fee section ends July 1.

Nursing facility payment rules are replaced

The law repeals former nursing facility fee-offset, performance, and condition-based payments and establishes Enterprise-run supplemental payments. Repealed performance minimums were 12% of provider-fee payments starting July 1, 2024, and 15% by July 1, 2026. Repealed condition-based minimums were 2% of the statewide average daily rate for severe mental health conditions and 1% for severe dementia-related conditions or acquired brain injury. New funding follows priorities covering administration, reimbursement appeals, fee offsets, care needs, performance, specified high-needs residents, and statewide daily-rate payments, subject to annual appropriations and available fee revenue and federal matches. Performance payments can stop for failure to meet state measures; specified dementia-related or brain-injury payments can end when case-mix rates already account for those facilities.

Sponsors & Cosponsors

Sponsors

  • Emily Sirota

    Democratic • House

  • Jeff Bridges

    Democratic • Senate

  • Judy Amabile

    Democratic • Senate

  • Shannon Bird

    Affiliation unavailable

Cosponsors

  • Chad Clifford

    Democratic • House

  • Julie McCluskie

    Democratic • House

  • Cathy Kipp

    Democratic • Senate

  • Dafna Michaelson Jenet

    Democratic • Senate

  • Sen. F. Winter

    Affiliation unavailable

  • James Coleman

    Democratic • Senate

  • Julie Gonzales

    Democratic • Senate

  • Katie Wallace

    Democratic • Senate

  • Lisa Cutter

    Democratic • Senate

  • Nick Hinrichsen

    Democratic • Senate

  • Tom Sullivan

    Democratic • Senate

Roll Call Votes

All Roll Calls

Yes: 340 • No: 145

House vote • 4/23/2025

Conference committee report: Adopt

Yes: 45 • No: 20

House vote • 4/23/2025

Conference committee report: Repass

Yes: 45 • No: 20

Senate vote • 4/23/2025

Conference committee report: Repass

Yes: 23 • No: 12

Senate vote • 4/23/2025

Conference committee report: Adopt ccr

Yes: 30 • No: 5

Vote • 4/17/2025

Adopt the first draft conference committee report of the first conference committee on SB 25-270

Yes: 6 • No: 0

House vote • 4/15/2025

Conference committee report: Byd scp

Yes: 54 • No: 10

Senate vote • 4/11/2025

House amendments: Not concur appt cc

Yes: 33 • No: 0

House vote • 4/10/2025

Third reading: Refer (hhs)

Yes: 26 • No: 39

House vote • 4/10/2025

Third reading: Bill

Yes: 44 • No: 21

House vote • 4/8/2025

Refer Senate Bill 25-270 to the Committee of the Whole.

Yes: 8 • No: 3

Senate vote • 4/3/2025

Third reading: Bill

Yes: 22 • No: 12

Senate vote • 4/1/2025

Refer Senate Bill 25-270, as amended, to the Committee of the Whole.

Yes: 4 • No: 3

Actions Timeline

  1. Governor Signed

    4/30/2025House
  2. Signed by the President of the Senate

    4/29/2025Senate
  3. Signed by the Speaker of the House

    4/29/2025House
  4. Sent to the Governor

    4/29/2025House
  5. House Consideration of First Conference Committee Report result was to Adopt Committee Report - Repass

    4/23/2025House
  6. Senate Consideration of First Conference Committee Report result was to Adopt Committee Report - Repass

    4/23/2025Senate
  7. Senate Considered House Amendments - Result was to Not Concur - Request Conference Committee

    4/11/2025Senate
  8. House Third Reading Passed - No Amendments

    4/10/2025House
  9. House Second Reading Special Order - Passed with Amendments - Floor

    4/9/2025House
  10. House Committee on Appropriations Refer Unamended to House Committee of the Whole

    4/8/2025House
  11. Senate Third Reading Passed - No Amendments

    4/3/2025Senate
  12. Introduced In House - Assigned to Appropriations

    4/3/2025House
  13. Senate Second Reading Special Order - Passed with Amendments - Committee

    4/2/2025Senate
  14. Senate Committee on Appropriations Refer Amended to Senate Committee of the Whole

    4/1/2025Senate
  15. Introduced In Senate - Assigned to Appropriations

    3/31/2025Senate

Bill Text

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