Date(s) - 04/01/2016
8:00 am - 9:30 am
Eaton Senior Communities
In 2009, Colorado lawmakers passed a bill to allow hospitals to pay a fee to the State of Colorado as a way to increase Medicaid revenue from the federal government. Each hospital is assessed a bed fee for the total number of beds that are used each year by Health Care Policy and Financing. The fee is assessed to the hospital. The hospital pays the fee to HCPF, which then files the report with the federal government. The federal government matches, in Colorado, almost every state dollar with a federal dollar, increasing the total amount of Medicaid dollars available to pay hospitals for uncompensated care, quality incentive programs, and expansion of Medicaid health care coverage.
In 2016, the hospital provider fee is expected to generate more than $700 million in income to the state. This year, the hospital provider will generate enough revenue to force a Tabor refund, reducing the amount of money the State will have to meet Medicaid costs.
Democrats want to create an enterprise zone; while Republicans are resisting the proposal. If the state creates an enterprise zone and the hospital provider funds are paid to the enterprise zone, the money is counted outside of the Tabor limits. Under the current statute, the money puts the taxes and fees collected by the state over the Tabor limits, including the hospital provider fee.
The legislature does not agree on how to manage the hospital fee, especially the Tabor refunds in light of a more than $370 million shortfall in revenues. Along party lines, Democrats believe they can pass a new statute to create an enterprise zone, while Republicans believe it will take a vote of the people to create an enterprise zone. Some national groups, including the Koch brothers are funding opposition efforts to change this statute.
If the hospital provider fee is not changed, taxpayers will get between $25 and $125 in 2017 and the state will have to cut other programs to balance the budget.
The Senior Leadership Seminar will discuss the view of the proponents and the opponents of making the hospital provider fee an enterprise zone. Time is running out as the legislature will soon have to pass the 2016-17 budget. Either the hospital provider will stay in current statute and taxpayers will receive a refund in 2017 and various government programs will be cut; or legislators will agree to change the current statute, have more money to fund current state programs, and tax payers will forego a refund.
Learn more about this debate, which Governor Hickenlooper has stated is the most important work of this year’s legislative session.
The Act authorized the Department of Health Care Policy and Financing to collect a hospital provider fee to increase Medicaid and Colorado Indigent Care Program (CICP) payments to hospitals, to fund hospital quality incentive payments, and to expand health care coverage in Medicaid and Child Health Plan Plus (CHP+) programs.
Join us on April 1, 2016 from 8:00 am to 9:30 am for The Colorado Gerontological Society’s Spring Leadership Summit. Our featured presenters, Kelly Brough of the Denver Metro Chamber of Commerce and Tony Gagliardi of the National Federation of Independent Businesses will address the critical issue of how this change will affect the Colorado state budget and the broader debate over healthcare financing in Colorado