JBC approves drafting of bills to move disability buy‑in premiums and consider nursing facility fees in enterprise

The Joint Budget Committee directed staff to draft and introduce two related bill drafts tied to the state’s health care fee and enterprise framework.

Rebecca Bietti of the Office of Legislative Legal Services presented a working title for the enterprise bill: "Concerning additional services provided by the Colorado Health Care Affordability and Sustainability Enterprise, and in connection therewith, modifying charges collected to provide additional services by the enterprise."

JBC staff described two components. First, a draft would change the statutory recipient of premiums for the Medicaid disability buy‑in program so those premiums are collected and retained by the Colorado Health Care Affordability and Sustainability Enterprise (sometimes called the HAS enterprise) rather than flowing directly to the state’s general revenue. Rick Kurtz, JBC staff, said the shift would reduce the state’s TABOR refund obligation by an estimated $1.1 million in the current year and about $6.7 million in 2025–26 on an ongoing basis, because premium dollars would be counted inside the enterprise rather than state TABOR‑countable revenue.

The committee approved introduction of the disability buy‑in bill draft by voice vote. The motion to introduce the enterprise disability buy‑in premiums bill and give staff technical‑correction authority passed unanimously.

Second, staff presented a related policy option: moving two nursing‑facility provider fees (the nursing facility fee and the intermediate care facility fee for individuals with developmental disabilities) to the enterprise model so the fee revenue would be accounted for inside the enterprise. JBC staff said moving those fees into the enterprise would reduce TABOR refund exposure by roughly $65.2 million annually. The committee did not adopt that draft as a bill during the same motion; instead members agreed to treat the nursing provider fee proposal as a Long Bill balancing assumption and asked staff to include the fiscal effect in draft balancing materials. That motion passed 4–2, with Representatives Taggart and Senator Kirkmeyer recorded as objecting.

Why it matters: moving fee and premium collections into an enterprise changes how those dollars are counted for TABOR purposes and can reduce the state’s TABOR refund obligation while preserving funding to operate programs. Those changes can be controversial because they alter the distribution of cash between TABOR‑countable state revenue and enterprise assets used for program support.

What the committee decided: the committee authorized introduction of the disability buy‑in enterprise bill (6–0) and agreed to include the nursing facility provider fee concept as a balancing assumption (4–2). Staff were given authority to make technical corrections to bill text and to work with legislative leadership on sponsorship and scheduling.