Second Regular Session Sixty-eighth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 12-0048.01 Brita Darling x2241 SENATE BILL 12-032 SENATE SPONSORSHIP Brophy, HOUSE SPONSORSHIP (None), Senate Committees House Committees Health and Human Services A BILL FOR AN ACT Concerning reforms to state-administered health care assistance programs by seeking federal authorization to allow the state greater flexibility in the management of the programs. 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 requires the department of health care policy and financing (state department) to seek a federal waiver to allow for increased flexibility and efficiency in the management of the medicaid program and the children's basic health plan. The waiver will seek authorization to determine eligibility categories and income levels and to establish an asset test for eligibility, implement cost-sharing and premiums, encourage the use of private health benefits coverage, and encourage persons to maintain employer-sponsored health insurance. As part of the waiver, the state department may negotiate for capped federal reimbursements with provisions for adjustments in the federal reimbursements for population growth and inflation. The state department shall report to the general assembly concerning the waiver request and identify necessary changes to state law to implement the reforms requested in the waiver. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, add 25.5-4-504 as follows: 25.5-4-504. Federal authorization - report. (1) (a) On or before September 1, 2012, the state department shall seek a federal waiver of provisions of the federal "Social Security Act" authorizing increased flexibility and efficiency in the management of Colorado's medical assistance program. The waiver shall be designed to reform the medical assistance program and the children's basic health plan by seeking authorization to: (I) Determine program eligibility, including eligibility categories and income levels, and establish an asset test for eligibility; (II) Allow for informed consumer behavior and appropriate utilization of health services through reasonable cost-sharing and premiums; (III) Encourage the use of the private health benefits coverage market rather than public benefits systems; and (IV) Encourage persons who have access to private employer-based health benefits to obtain and maintain those benefits. (b) In seeking federal authorization pursuant to this section for the reform of the medical assistance program and children's basic health plan, the state department is authorized to negotiate a cap on federal reimbursements to the state with provisions for adjustments due to population growth and inflation. (2) The state department shall: (a) Report to the health and environment committee of the house of representatives, or its successor committee, and to the health and human services committee of the senate, or its successor committee, concerning federal authorization pursuant to subsection (1) of this section for the reform of the medical assistance program and the children's basic health plan; and (b) Identify necessary changes to state law to implement reforms pursuant to the federal authorization. SECTION 2. Safety clause. The general assembly hereby finds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, and safety.