Colorado Medicaid Revamps Behavioral Health Safety Net Reimbursement

The Colorado Department of Health Care Policy and Financing (HCPF) is revising its reimbursement strategy for behavioral health safety net services covered under the state’s prospective payment system (PPS). Taking effect October 1, 2026, the changes include a more restricted cost basis for the PPS and permission for the Regional Accountable Entities (RAEs) that manage Medicaid behavioral health to implement value-based purchasing initiatives that could result in paying only 80% of the current PPS.

The changes in payment will affect the comprehensive outpatient services provided by the state’s 19 Comprehensive Safety Net Providers (CSNPs). The CSNPs provide . . .