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SB 25B-002

State-Only Funding for Certain Entities

2025 First Extraordinary Session Introduced by Judy Amabile and 60 co-sponsors

Colorado will reimburse certain prohibited-entity Medicaid services with state funds only (not federal) for 7/1/2025+ if federal reimbursement is unavailable.

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Bill Summary · SB 25B-002

SB 25B-002 — State‑Only Funding for Certain Entities

Status: Signed into law (Governor signed 08/26/2025)
Effective for reimbursement of services provided on or after 07/01/2025

Purpose / Intent

To ensure that entities barred from receiving federal Medicaid (CMS) reimbursements because of federal law are nonetheless reimbursed by the State of Colorado — using state funds only — for covered Medicaid (Title XIX) services they provide on or after July 1, 2025.

Key provisions

  • Adds Colorado Revised Statutes section 25.5-2-107.
  • Requires the Department of Health Care Policy and Financing (HCPF) to reimburse a "prohibited entity" (as defined in Pub.L. 119‑21 §71113) using only state funds for services covered under Title XIX (Medicaid) and provided on or after July 1, 2025.
  • Reimbursement is limited to claims that are not eligible for federal reimbursement from CMS.
  • The section does not apply if the entity is eligible for CMS reimbursement at the time services are provided.
  • Excludes services covered under CRS section 25.5-2-106 (i.e., the new funding requirement does not duplicate whatever is covered by that section).
  • Grants the State Board (HCPF board) authority to adopt rules necessary to implement the statute.

Who is affected

  • Directly: Entities prohibited from receiving CMS reimbursement under Pub.L. 119‑21 §71113 (for example, Planned Parenthood of the Rocky Mountains is cited in the fiscal analysis).
  • Indirectly: Colorado Medicaid program (HCPF) as the payer of state-only reimbursements; Medicaid members who receive reproductive and preventive health services from affected entities.
  • Fiscal/administrative: State General Fund (potential increased expenditures); HCPF rulemaking and claims-processing functions.

Fiscal impact (per Legislative Council Staff)

  • Conditional annual increase in state General Fund expenditures of up to $4,377,694 (based on FY 2024‑25 claims data where HCPF paid Planned Parenthood of the Rocky Mountains $4,864,104 for covered services, $4,377,694 of which had been federally funded).
  • No new FTE estimated (0.0 FTE).
  • No immediate appropriation required for FY 2025‑26; a General Fund appropriation would be requested through the supplemental or annual budget process only if federal injunctive relief is lifted and federal reimbursement is unavailable.
  • Costs may vary over time with utilization shifts or changes in federal policy or litigation outcomes.

Timeline & procedural notes

  • Introduced: 08/21/2025; passed both chambers (no amendments on final readings); enrolled and signed by legislative leaders 08/25/2025; Governor signed 08/26/2025.
  • Effective for covered services provided on or after 07/01/2025 (statutory language) and the act was finalized 08/26/2025.
  • Implementation is conditional on the federal litigation and the operational status of the federal prohibition; HCPF may need to request funding if federal reimbursement is unavailable going forward.

Implementation considerations

  • HCPF must identify claims ineligible for federal reimbursement and process state‑only payments.
  • Rulemaking authority is provided to operationalize reimbursement procedures.
  • Actual state costs will depend on utilization, provider shifts, and federal policy/litigation developments.

Compiled from official sources — confirm details with the bill’s official record.

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