NOTE: The governor signed this measure on 3/22/2013.
      
      
      SENATE BILL 13-044
      
      
      BY SENATOR(S) Nicholson, Giron, Kefalas, King, Newell, Roberts;
      also REPRESENTATIVE(S) Coram, Ginal, Stephens, Young.
      
      
      Concerning incentive payments in prepaid inpatient health plan
           agreements.
       
      
      Be it enacted by the General Assembly of the State of Colorado:
      
           SECTION 1.  In Colorado Revised Statutes, 25.5-5-407.5, amend
      (2) (a) as follows:
      
           25.5-5-407.5.  Prepaid inpatient health plan agreements - rules.
      (2) (a)  A PIHP agreement may include a provision for a quality incentive
      payment that is distributed to the contractor within six months a
      reasonable period of time, as specified in the contract, following the
      end of each fiscal year if the contractor substantially exceeds predetermined
      quality indicators. The quality indicators shall be based upon broadly
      accepted measures of performance adopted by rule of the state board and
      agreed upon at the outset of the contract period, and shall include, but need
      not be limited to, the health plan employers data and information set
      measures. The quality incentive payment may be made proportional if the
      state board establishes multiple quality measurements. The quality incentive
      payments shall not exceed the total cost savings created under the PIHP
      agreement, as determined by comparison of the PIHP members with an
      actuarially equivalent fee-for-service population, and the quality incentive
      payment shall not exceed five percent of the total medicaid payments
      received by the contractor during the performance period of the PIHP
      agreement.
      
           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.
      
      
      
      
      ____________________________  ____________________________
      John P. Morse                         Mark Ferrandino
      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