Date: 03/22/2006

Final
BILL SUMMARY for SB06-129

HOUSE COMMITTEE ON FINANCE

Votes: View--> Action Taken:
Refer Senate Bill 06-129 to the Committee on ApproPASS


02:08 PM -- Senate Bill 06-129 - Concerning Cash Accounting for Programs Under Title XIX of the Federal Social Security Act

Representative Buescher, prime sponsor, explained the provisions of the bill and commented on the savings enumerated in the fiscal note. Representative Buescher said that the bill is recommended by the Joint Budget Committee. It requires the Department of Health Care Policy and Financing to use the cash system of accounting for all non-administrative expenditures that qualify for federal matching funds through Medicaid, but exempts the Indigent Care Program from this requirement. Representative Buescher said that as part of the budget balancing activities in 2003, the General Assembly passed SB03-196 which allowed certain Medicaid programs to use "cash-based" rather than "accrual-based" accounting procedures. This bill will broaden the provisions of SB03-196 to allow all Medicaid medical programs to use cash-based accounting. The accounting change will not affect the amount of claims or payments to providers. This bill only changes when those claims are "booked" for accounting purposes. Representative Buescher closed by saying that with accrual-based accounting, expenses are incurred, or booked, when goods or services are provided, even though bills may be paid at a later date. With cash-based accounting,expenses are incurred when bills are paid.

The following person testified:

02:13 PM -- Ms. Lisa Esgar, Colorado Department of Health Care Policy and Finance, responded to committee questions.
BILL:SB06-129
TIME: 02:14:17 PM
MOVED:Cloer
MOTION:Refer Senate Bill 06-129 to the Committee on Appropriations. The motion passed on a 11-0-2 vote.
SECONDED:Benefield
VOTE
Benefield
Yes
Cloer
Yes
Crane
Yes
Frangas
Yes
Garcia
Yes
Harvey
Yes
Jahn
Excused
Kerr
Yes
Marshall
Excused
Massey
Yes
McCluskey
Yes
Judd
Yes
Vigil
Yes
Final YES: 11 NO: 0 EXC: 2 ABS: 0 FINAL ACTION: PASS