Second Regular Session Seventieth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 16-0843.01 Christy Chase x2008 SENATE BILL 16-139 SENATE SPONSORSHIP Roberts and Hodge, HOUSE SPONSORSHIP Coram, Senate Committees House Committees Health & Human Services A BILL FOR AN ACT Concerning a requirement that the Colorado commission on affordable health care develop a proposal under any applicable federal law to enable the state to operate a global payment system pilot program for hospitals in certain areas of the state. 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 directs the Colorado commission on affordable health care to develop a proposal under any applicable federal law to enable the state to modify the system for reimbursing hospitals located in certain rural areas of the state for treating medicare and privately insured patients using a total-cost-of-care model rather than a fee-for-service model. The commission is to develop and submit the proposal to the governor and specified legislative committees within 60 days after the bill takes effect and present its proposal to a joint meeting of the legislative committees. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, 25-46-102, amend (1); and add (1.5) and (7) as follows: 25-46-102. Definitions. As used in this article: (1) "Commission" means the Colorado commission on affordable health care established under section 25-46-103. "Affordable care act" means the "Patient Protection and Affordable Care Act", Pub.L. 111-148, as amended by the "Health Care and Education Reconciliation Act of 2010", Pub.L. 111-152. (1.5) "Commission" means the Colorado commission on affordable health care established under section 25-46-103. (7) "Medicare" means federal insurance or assistance as provided by Title XVIII of the federal "Social Security Act", as amended, 42 U.S.C. sec. 1305 et seq. SECTION 2. In Colorado Revised Statutes, 25-46-104, add (2.5) as follows: 25-46-104. Duties of commission - mission - staffing - report. (2.5) (a) In addition to the powers and duties specified in subsection (2) of this section, within sixty days after the effective date of this subsection (2.5), the commission shall develop a proposal under any applicable federal law to enable the state to operate a global payment system pilot program that focuses on a total cost-of-care model rather than a fee-for-service model for the reimbursement of hospitals for medicare patients. The proposal must include at least the following components: (I) Designation of the geographic areas in which the state will operate the pilot program, focusing primarily on the two nonmetropolitan statistical areas designated by the Colorado division of insurance for the 2016 calendar year as the east and west geographic rating areas and the Grand Junction metropolitan statistical area; (II) Designation of the specific hospitals required to participate in the pilot program; (III) A general description of a total-cost-of-care reimbursement model for hospital reimbursement, including how the state might propose that the federal government modify medicare reimbursement and how that modification is intended to impact health insurance premiums; (IV) Specification of what agency or entity will operate the pilot program and who will provide oversight of the agency or entity operating the pilot program; and (V) A recommendation indicating which state department or agency, or combination of departments or agencies, should pursue the proposal with the federal government. (b) The commission shall develop the proposal within the time specified in paragraph (a) of this subsection (2.5), submit the proposal to the governor and the legislative committees specified in subsection (8) of this section, and present the proposal to a joint meeting of the legislative committees during the 2016 legislative session. SECTION 3. 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.