Colorado Medicaid To Develop New Payment Methodology For Nursing Facilities

New Colorado legislation will move its Medicaid reimbursement methodology for nursing facilities from state statute to state regulation overseen by the Department of Health Care Policy & Financing (HCPF). The legislation, Colorado House Bill (HB) 23-1228, was signed on May 31, 2023. It authorizes HCPF to set rates by regulation starting in 2026, which is expected to allow the state to adjust reimbursement rates more quickly in response to market dynamics and facility operating costs. Additionally, by using a rulemaking process, HCPF and the nursing facility industry and other stakeholders will have more opportunity to discuss what is needed . . .