Committee debates but lays over bill to let primary‑care fund accept gifts for community health centers

House sponsors and witnesses debated House Bill 12‑88, which would allow Colorado’s primary care fund to accept private and public gifts to support federally qualified health centers (FQHCs). After testimony from state finance and clinic witnesses about federal Medicaid limitations, sponsors withdrew proposed amendments and laid the bill over for further work.

Representative Martinez, the bill sponsor, said the bill would strengthen community health centers that provide a health‑care home for people regardless of ability to pay. "Patient access is the heart of House Bill 12‑88," Martinez said, noting FQHCs provide care in rural and underserved urban neighborhoods and that strengthening them can reduce costly emergency care down the line.

During witness testimony, Joshua Block of the Department of Health Care Policy and Financing explained federal Medicaid rules limit how private donations may be used to draw federal matching funds. He told the committee that conditioning payments to a specific provider based on a donation would likely run afoul of federal regulation and that the department sought language protecting budget neutrality and preventing double payment to providers.

Other witnesses — including representatives of Denver Health, Salud Family Health Centers and statewide community health center trade groups — said community health centers have seen financial strain following recent Medicaid coverage changes. Ross Brooks said community health centers have lost tens of thousands of Medicaid patients and many clinics reported negative operating margins in 2024.

Sponsors offered two amendments, labeled L001 and L002, to remove sections 2 and 3 of the bill (which raised federal compliance questions) and to revise the bill’s structure and cost‑reporting language. Following discussion, sponsors withdrew both motions and asked for additional time to refine the bill. The chair laid the bill over for further action; sponsors said they would return with clarified language on the floor or in subsequent hearings.

The committee did not take a final vote on the bill. Witnesses and sponsors agreed on the goal of stabilizing FQHC finances; the remaining drafting task is to reconcile state authority to accept gifts with Medicaid rules on federal matching and allowable uses.

The sponsors and the department said changes would be needed so donated funds could not be directed to a single provider and to ensure the state does not double‑reimburse a provider for the same services. The sponsors indicated they may pursue a floor amendment or return with revised text that keeps the core idea of enabling donations into the primary care fund while ensuring compliance with federal law.