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Committee advances Medicaid administrative changes to reduce provider paperwork and align therapy rules
Summary
The House Health & Human Services Committee voted to advance House Bill 12-13 to Appropriations after testimony from state Medicaid officials and provider associations. Sponsors said the technical changes will reduce administrative burdens for small assisted‑living homes and therapy providers and align state rules with federal Medicaid practice.
The House Health & Human Services Committee approved House Bill 12-13, a package of Medicaid administrative changes intended to reduce administrative burden and clarify billing and facility rules for providers.
Sponsor Representative Dylan Frey said the bill includes modest, targeted changes: limited exemptions from Facility Guidelines Institute (FGI) structural design review for assisted‑living homes with fewer than 19 beds when no structural work is performed; an annual review process for the Medicaid billing manual; clarification that managed‑care organizations should pay outstanding claims within one year; annual public reporting of managed‑care medical loss ratios; alignment of plan‑of‑care signature requirements for physical, occupational and speech therapy with federal standards; and a continuity‑of‑treatment timeline for state‑level service terminations.
Witnesses from the Department of Health Care Policy & Financing (HCPF) told the committee the department worked with the sponsor to narrow the bill’s language and keep it compliant with federal Medicaid rules. Kristen Bates, Deputy Medicaid Director, said the changes will reduce provider paperwork and help ensure counties and providers can operate within federal funding constraints. Long‑term‑care groups including the Colorado Assisted Living Association supported the FGI exemption for very small homes, arguing the change will allow modest room reconfigurations and equipment upgrades without a lengthy design‑review process.
Provider groups also asked the committee to support the plan‑of‑care provision for PT/OT/speech so therapists can operate under the same certification rules as Medicare, reducing administrative friction and improving access. The committee approved multiple technical amendments requested by HCPF and by providers. HB12-13 passed out of committee by roll call to Appropriations.
Outcome: The committee voted to refer the bill to Appropriations with a favorable recommendation.
