Date: 02/26/2015

Final
BILL SUMMARY for HB15-1143

HOUSE COMMITTEE ON HEALTH, INSURANCE, & ENVIRONMENT

Votes: View--> Action Taken:
Adopt amendment L.001 (Attachment F). The motion p
Refer House Bill 15-1143, as amended, to the Commi		Pass Without Objection
PASS



04:14 PM -- HB 15-1143

Representative Conti presented House Bill 15-1143, concerning a tax incentive for home health care. Representative Conti explained that she would be offering amendment L.001 (Attachment F), which is a strike-below amendment. With strike below amendment L.001, the bill provides a state income tax credit of up to $3,000 per year for out-of pocket costs for durable medical equipment (DME), telehealth equipment, home modifications, or home health care services incurred by a taxpayer who is 75 years of age or older.

150226 AttachF.pdf150226 AttachF.pdf

To claim the credit, the qualifying senior must obtain a credit certificate from an approved medical provider and include it with his or her tax return.

The amount of the credit is based on the taxpayer's federal taxable income and a percentage of the out-pocket costs incurred by the qualified senior. The amount of the credit is determined as follows:

• for single income tax filers with a federal taxable income between $0 and $25,000, taxpayers may claim 70 percent of the out-of-pocket costs incurred by the qualifying senior;
• for single income tax filers with a federal taxable income between $25,001 and $45,000, taxpayers may claim 35 percent of the out-of-pocket costs;
• for joint income tax filers with a federal taxable income between $0 and $50,000, taxpayers may claim 70 percent of the out-of-pocket costs incurred by the qualifying senior; and
• for joint income tax filers with a federal taxable income between $50,001 and $90,000, taxpayers may claim 35 percent of the out-of-pocket costs.

The tax credit is capped at $3,000 per income tax year and is nonrefundable. The taxpayer may carry forward any unused credits for up to three years. The taxpayer agrees to allow the Department of Revenue to review all necessary records related to the income tax credit under this bill.

The credit will be available for tax years 2015 through 2017.

Representative Conti answered questions about the bill and proposed amendment. The committee discussed the bill's fiscal note.

04:25 PM -- John Baumgarten, Virtual Care Works, spoke in support of the bill and discussed the provisions of amendment L.001 related to telehealth equipment. He responded to questions from the committee regarding telehealth equipment, and whether Medicare or Medicaid covers the equipment.

04:32 PM -- Ed Shackelford, Colorado Senior Lobby, testified in support of the bill. He discussed the cost effectiveness of the bill and the technology that can be installed in a home to improve home care. Representative Conti answered questions about expanding the bill to include additional technology.

04:37 PM -- John Vecchiarelli, Department of Revenue, made himself available for questions. He answered questions about expanding the list of accepted home improvements and DME. Mr. Vecchiarelli and Representative Conti responded to questions about the list of approved home care agencies required by amendment L.001. Mr. Vecchiarelli answered questions about the ownership requirements of the home to which improvements are being made. Representative Conti answered questions about what home modifications would be eligible for the tax credit. The committee dialogued with Representative Conti about the proposed amendment. Mr. Vecchiarelli answered questions about the percentage of the costs incurred that would be allowable for the tax credit as outlined by amendment L.001.

04:47 PM -- Vickie Agler, Colorado Association for Medical Equipment Services, testified in support of the bill. She discussed the definition of DME. Ms. Agler answered questions about the existing sales tax exemption for DME.

04:49 PM -- Amy Downs, Colorado Health Institute, testified in a neutral capacity. She read from the fact sheet she provided (Attachment G). Ms. Downs answered questions about the potential costs and savings the bill could provide. Representative Conti answered questions about whether assisted living facilities would be covered by the bill or only private residences.

150226 AttachG.pdf150226 AttachG.pdf

04:58 PM -- Lorin Chevalier, Home Care Association, testified in support of the bill. He discussed how the bill addresses the needs of Colorado's senior population. He listed the types of services seniors may need that are not covered by Medicare.

05:04 PM -- Diana Protopapa, Alzheimer's Association, testified in support of the bill.

05:05 PM -- Betsy Murray, Accessible Systems, testified in support of the bill. She discussed the home modifications listed under the proposed amendment.

05:06 PM -- Ellen Caruso, Home Care Agencies, testified in support of the bill. She discussed Medicare coverage of home health care and telehealth.

05:09 PM

Louis Pino, Legislative Council Staff, answered questions about the fiscal note.

05:16 PM

Esther van Mourik, Office of Legislative Legal Services, answered questions about the effective date of the bill. Mr. Pino answered additional questions about the fiscal note.

05:23 PM

Mr. Vecchiarelli returned to the witness table to answer questions about the additional FTE needed to implement the bill. Committee members commented on the bill and amendment L.001.
BILL:HB15-1143
TIME: 05:32:46 PM
MOVED:McCann
MOTION:Adopt amendment L.001 (Attachment F). The motion passed without objection.
SECONDED:Ginal
VOTE
Brown
Esgar
Humphrey
Joshi
Klingenschmitt
Landgraf
Lontine
Mitsch Bush
Primavera
Ransom
Ryden
Ginal
McCann
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


05:34 PM

Representative Conti made concluding remarks about the bill.
BILL:HB15-1143
TIME: 05:36:22 PM
MOVED:Ginal
MOTION:Refer House Bill 15-1143, as amended, to the Committee on Finance. The motion passed on a vote of 10-3.
SECONDED:Primavera
VOTE
Brown
Yes
Esgar
Yes
Humphrey
No
Joshi
Yes
Klingenschmitt
Yes
Landgraf
No
Lontine
Yes
Mitsch Bush
Yes
Primavera
Yes
Ransom
No
Ryden
Yes
Ginal
Yes
McCann
Yes
Final YES: 10 NO: 3 EXC: 0 ABS: 0 FINAL ACTION: PASS



05:37 PM

The committee adjourned.