SENATE 2nd Reading Unamended February 21, 2011First Regular Session Sixty-eighth General Assembly STATE OF COLORADO ENGROSSED This Version Includes All Amendments Adopted on Second Reading in the House of Introduction LLS NO. 11-0548.01 Brita Darling HOUSE BILL 11-1025 HOUSE SPONSORSHIP Joshi, SENATE SPONSORSHIP Lundberg, House Committees Senate Committees Health and Environment A BILL FOR AN ACT Concerning the repeal of provisions related to the hospital provider fee. Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://www.leg.state.co.us/billsummaries.) The bill repeals the "Health Care Affordability Act of 2009" that established hospital provider fees on outpatient and inpatient services provided by all licensed or certified hospitals. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. Repeal. 2-3-119, 2-3-1203 (3) (ff) (V), 25.5-3-108 (17), 25.5-4-402 (3), 25.5-4-402.3, 25.5-5-201 (1) (m) (I) (B), (1) (m) (I) (C), (1) (o) (II), (1) (o) (III), (1) (p), (1) (q), and (1) (r), 25.5-5-204.5, 25.5-5-206, and 25.5-8-103 (4) (a) (II), (4) (a) (III), (4) (b) (II), and (4) (b) (III), Colorado Revised Statutes, are repealed. SECTION 2. 25.5-4-402 (1), Colorado Revised Statutes, is amended to read: 25.5-4-402. Providers - hospital reimbursement - rules. (1) For all licensed or certified hospitals contracting for services under this article and articles 5 and 6 of this title, except those hospitals operated by the department of human services or those hospitals deemed exempt by the state board, The state department shall pay for inpatient hospital services all licensed or certified hospitals under this article and articles 5 and 6 of this title, except those hospitals operated by the department of human services, pursuant to a system of prospective payment, generally based on the elements of a the medicare system of diagnosis-related group system groups. The state department shall develop and administer a system for ensuring appropriate utilization and quality of care provided by those providers who are reimbursed pursuant to the system of prospective payment developed under this section. Subject to available appropriations, the state department may also make supplemental medicaid payments to certain hospitals. The state board shall promulgate rules to provide for the implementation of this section. SECTION 3. 25.5-5-101 (4) (c) (II), Colorado Revised Statutes, is amended to read: 25.5-5-101. Mandatory provisions - eligible groups. (4) (c) Subject to the receipt of any necessary federal approval and pursuant to 42 U.S.C. sec. 1396a (r) (2) and 42 U.S.C. sec. 1396u-1 (b) (2) (C), for the groups described in paragraphs (a) to (c) of subsection (1) of this section, the state board shall develop an income- and resource-counting method to replace the method used under the aid to families with dependent children program pursuant to rules that were in effect on July 16, 1996. The income- and resource-counting method shall be: (II) No less restrictive than the method used to determine eligibility for other covered groups under subsection (1) of this section and sections 25.5-5-201, 25.5-5-204, 25.5-5-204.5, and 25.5-5-205. SECTION 4. 25.5-5-201 (1) (m) (I) (A) and (5) (c) (II), Colorado Revised Statutes, are amended to read: 25.5-5-201. Optional provisions - optional groups - repeal. (1) The federal government allows the state to select optional groups to receive medical assistance. Pursuant to federal law, any person who is eligible for medical assistance under the optional groups specified in this section shall receive both the mandatory services specified in sections 25.5-5-102 and 25.5-5-103 and the optional services specified in sections 25.5-5-202 and 25.5-5-203. Subject to the availability of federal financial aid funds, the following are the individuals or groups that Colorado has selected as optional groups to receive medical assistance pursuant to this article and articles 4 and 6 of this title: (m) (I) (A) Parents of children who are eligible for the medical assistance program or the children's basic health plan, article 8 of this title, whose family income does not exceed a specified percent of the federal poverty line, adjusted for family size, as set by the state board by rule, which percentage shall be not less than one hundred sixty percent. (5) (c) Subject to the receipt of any necessary federal approval and pursuant to 42 U.S.C. sec. 1396a (r) (2) and 42 U.S.C. sec. 1396u-1 (b) (2) (C), for the groups described in paragraphs (d) and (e) of subsection (1) of this section, the state board shall develop an income- and resource-counting method to replace the method used under the aid to families with dependent children program pursuant to rules that were in effect on July 16, 1996. The income- and resource-counting method shall be: (II) No less restrictive than the method used to determine eligibility for other covered groups under subsection (1) of this section and sections 25.5-5-101, 25.5-5-204, 25.5-5-204.5, and 25.5-5-205. SECTION 5. 25.5-8-103 (4) (a) (I) and (4) (b) (I), Colorado Revised Statutes, are amended to read: 25.5-8-103. Definitions - repeal. As used in this article, unless the context otherwise requires: (4) "Eligible person" means: (a) (I) A person who is less than nineteen years of age, whose family income does not exceed two hundred fifty five percent of the federal poverty line, adjusted for family size; except that, subject to available appropriations, the department may increase the percentage of the federal poverty line for purposes of eligibility to up to two hundred fifty percent; or (b) (I) A pregnant woman whose family income does not exceed two hundred fifty five percent of the federal poverty line, adjusted for family size, and who is not eligible for medicaid; except that, subject to available appropriations, the department may increase the percentage of the federal poverty line for purposes of eligibility to up to two hundred fifty percent. SECTION 6. 24-4-103 (8) (c) (I), Colorado Revised Statutes, is amended to read: 24-4-103. Rule-making - procedure - repeal. (8) (c) (I) Notwithstanding any other provision of law to the contrary and the provisions of section 24-4-107, all rules adopted or amended on or after January 1, 1993, and before November 1, 1993, shall expire at 11:59 p.m. on May 15 of the year following their adoption unless the general assembly by bill acts to postpone the expiration of a specific rule, and commencing with rules adopted or amended on or after November 1, 1993, all rules adopted or amended during any one-year period that begins each November 1 and continues through the following October 31 shall expire at 11:59 p.m. on the May 15 that follows such one-year period unless the general assembly by bill acts to postpone the expiration of a specific rule. except that a rule adopted pursuant to section 25.5-4-402.3 (5) (b) (III), C.R.S., shall expire at 11:59 p.m. on the May 15 following the adoption of the rule unless the general assembly acts by bill to postpone the expiration of a specific rule. The general assembly, in its discretion, may postpone such expiration, in which case, the provisions of section 24-4-108 or 24-34-104 shall apply, and the rules shall expire or be subject to review as provided in said sections. The postponement of the expiration of a rule shall not constitute legislative approval of the rule nor be admissible in any court as evidence of legislative intent. The postponement of the expiration date of a specific rule shall not prohibit any action by the general assembly pursuant to the provisions of paragraph (d) of this subsection (8) with respect to such rule. SECTION 7. Repeal. Section 11 of chapter 152, Session Laws of Colorado 2009, is repealed as follows: Section 11. Accountability. Five years after this act becomes law and in accordance with section 2-2-1201, Colorado Revised Statutes, the legislative service agencies of the Colorado General Assembly shall conduct a post-enactment review of the implementation of this act utilizing the information contained in the legislative declaration set forth in section 25.5-4-402.3 (2), Colorado Revised Statutes. SECTION 8. Act subject to petition - effective date. This act shall take effect at 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly (August 10, 2011, if adjournment sine die is on May 11, 2011); except that, if a referendum petition is filed pursuant to section 1 (3) of article V of the state constitution against this act or an item, section, or part of this act within such period, then the act, item, section, or part shall not take effect unless approved by the people at the general election to be held in November 2012 and shall take effect on the date of the official declaration of the vote thereon by the governor.