NOTE:  This bill has been prepared for the signatures of the appropriate legislative
officers and the Governor.  To determine whether the Governor has signed the bill
or taken other action on it, please consult the legislative status sheet, the legislative
      history, or the Session Laws.
      
      
      SENATE BILL 12-128
      
      
      BY SENATOR(S) Roberts, Aguilar, Boyd, Cadman, Foster, Grantham,
      Guzman, Jahn, Johnston, King K., King S., Lambert, Lundberg, Neville,
      Newell, Scheffel, White, Williams S.;
      also REPRESENTATIVE(S) Summers, Fields, Kagan, Kerr A., Kerr J.,
      Labuda, Massey, Schafer S., Singer, Stephens, Todd, Wilson, Young.
      
      
      Concerning achieving efficiencies in the medicaid long-term care
           program through greater utilization of alternative care
           facilities.
       
      
      Be it enacted by the General Assembly of the State of Colorado:
           
           SECTION 1.  In Colorado Revised Statutes, add 25.5-6-114 as
      follows:
      
           25.5-6-114.  Alternative care facilities - reimbursement programs
      - legislative declaration - report - repeal. (1) (a)  The general assembly
      hereby finds and declares that:
      
           (I)  The number of Coloradans needing long-term care is
      increasing;
      
           (II)  State general fund expenditures for long-term care
      already represent a significant portion of the state's medical
      assistance budget;
      
           (III)  Many persons in need of long-term care are often
      unaware that they may be able to receive long-term care services
      in a home-like environment, at a lower cost to the medicaid
      program;
      
           (IV)  Studies have been conducted informing the state that
      an enhanced reimbursement methodology is necessary for the
      establishment of a strong continuum of care for long-term care;
      
           (V)  Other alternatives to nursing home care should be
      developed and implemented; and
      
           (VI)  Unless Colorado implements new methods for financing
      long-term care, the cost to the state for long-term care services
      will continue to rise precipitously.
      
           (b)  Therefore, the general assembly finds that it is
      appropriate to establish a program to provide greater financial
      incentives to alternative care facilities that are able to meet the
      needs of medicaid clients at a lower cost to the medicaid program.
      
           (2)  In order to decrease the number of costly readmissions
      to nursing facilities, the state department may create an
      enhanced reimbursement program in which an alternative care
      facility receives a temporary increase in the medicaid per diem
      reimbursement rate for a medicaid client discharged from a
      nursing facility to an alternative care facility. The state
      department shall develop the criteria for participation in the
      enhanced reimbursement program.
      
           (3)  In order to address the needs of medicaid clients who
      are at risk of nursing home placement, the state department may
      also create a program, informed by prior studies, that may
      include, but need not be limited to, tiered-rate, acuity, and
      enhanced reimbursements for alternative care facilities and
      enhanced alternative care services. Any program created by the
      state department pursuant to this subsection (3) shall be
      budget-neutral or shall produce cost savings to the state
      department.
      
           (4)  As part of its annual reporting requirement, the state
      department shall submit a written report to the joint budget
      committee of the general assembly, the health and human services
      committee of the senate, or any successor committee, and the
      health and environment committee of the house of
      representatives, or any successor committee, concerning the
      design, implementation, and outcome of any program created
      pursuant to subsections (2) or (3) of this section.
      
           (5)  This section is repealed, effective July 1, 2015.
      
           SECTION 2.  Act subject to petition - effective date. This act
      takes 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
      8, 2012, if adjournment sine die is on May 9, 2012); 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 will not take effect unless
      approved by the people at the general election to be held in November 2012
      and, in such case, will take effect on the date of the official declaration of
      the vote thereon by the governor.
      
      
      
      
      ____________________________  ____________________________
      Brandon C. Shaffer                      Frank McNulty
      PRESIDENT OF                     SPEAKER OF THE HOUSE
      THE SENATE                         OF REPRESENTATIVES
      
      
      
      
      
      
      ____________________________  ____________________________
      Cindi L. Markwell                      Marilyn Eddins
      SECRETARY OF                 CHIEF CLERK OF THE HOUSE
      THE SENATE                         OF REPRESENTATIVES
      
      
      
      
                  APPROVED________________________________________
      
      
      
      
      
                                    _________________________________________
                                    John W. Hickenlooper
                                    GOVERNOR OF THE STATE OF COLORADO