Bill Summary for Bill Number SB06-145

Date: 02/14/2006

Final
BILL SUMMARY for SB06-145

SENATE COMMITTEE ON LOCAL GOVERNMENT

Votes: View-->	Action Taken:
Move SB06-145 to the Committee of the Whole with t Moved to adopt prepared amendment L.002 (Attachmen	PASS Pass Without Objection TIE

02:14 PM -- Senate Bill 06-145

Senator Shaffer, prime sponsor, presented his bill to the committee explaining that this bill will allow health care providers to access more federal funds to off-set some costs of treating Medicaid patients that are not, currently, reimbursed. Senator Shaffer explained how the Medicaid and Medicare programs work and that this bill will allow local governmental entities to assess optional fees, up to 6 percent, against private health care service providers. This fee will be collected by local governments to match Medicaid funding to be redistributed to the participating health care service providers. Senator Shaffer elaborated on the funding formula of Medicaid and on how the fees will be matched through federal Medicaid funding and distributed to the participating providers. He explained that both the fees and matching dollars are passed on to each participating provider of each health district based on a formula and on the geographical boundaries of each health district. Senator Shaffer explained that, due to these factors of distribution, these monies may be distributed disproportionately to the health service providers within the health districts. Senator Shaffer referenced a handout from the Colorado Hospital Association 2003 Reference Guide, which listed the amounts of Medicaid reimbursement money that could have been received by the listed health providers, had this bill been enacted in 2003 (Attachment A). Senator Shaffer responded to questions from the committee regarding the federal match for Medicaid costs and hospital oversight of how these Medicaid dollars are spent.

02:32 PM

Don Vansel, Kiesler Vansel, testified in support of SB145 and informed the committee that he helped in drafting SB145, along with other interested parties, to allow private health care providers to be reimbursed through the federal Medicaid program. Mr. Vansel explained that this bill is enabling legislation to help local health providers to benefit from federal Medicaid funding. Mr. Vansel clarified questions relating to revenue from Medicaid, Medicare, Blue Cross, etc. Mr. Vansel responded to questions regarding the fee that is assessed at a local level, net and gross revenues that are addressed in the bill, and the subject of federal caps on Medicaid funding. Discussion ensued between Senator Shaffer and Mr. Vansel regarding the difference between a fee and a tax and clarifying the formula for Medicaid/Medicare hospital payments according to the bill.

02:53 PM

Peter Freytag, Colorado Hospital Association, testified in support of SB145 and spoke to the committee regarding the financial strain placed on Colorado hospitals by Medicaid patients. This bill will maximize funding in order to provide care to Medicaid and uninsured patients (Attachment B).

02:56 PM

John Hicks, President and CEO, Platte Valley Medical Center, testified in support of the bill and spoke to the need for increasing Medicaid funding, especially in rural Colorado hospitals.

02:58 PM

Betsy Murray, Home Care Association of Colorado, testified in support of the bill and stated that this bill will create an opportunity for home care providers.

03:01 PM

Carrie Curtiss, Colorado Consumer Health Initiative, testified in support of the bill and spoke to the need for Colorado to maximize its health care system through increasing Medicaid funding.

03:04 PM

Don Vansel and Senator Shaffer responded to questions from the committee regarding information that was not available in Senator Shaffer's handout (Attachment A).

Senator Shaffer entered closing comments on his bill and introduced prepared amendment L.002 (Attachment C).


BILL:	SB06-145
TIME:	03:06:59 PM
MOVED:	Tochtrop
MOTION:	Moved to adopt prepared amendment L.002 (Attachment B). Motion passed without objection.
SECONDED:
		VOTE
	Bacon
	Entz
	Jones
	Kester	Excused
	Tochtrop
	Groff
	Hanna
Not Final YES: 0 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	SB06-145
TIME:	03:07:55 PM
MOVED:	Tochtrop
MOTION:	Move SB06-145 to the Committee of the Whole with the recommendation that it be placed on the Consent Calendar. Motion passed on a 6-0-1 vote.
SECONDED:
		VOTE
	Bacon	Yes
	Entz	Yes
	Jones	Yes
	Kester	Excused
	Tochtrop	Yes
	Groff	Yes
	Hanna	Yes
Final YES: 6 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS