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HB26-1235 • 2026

Updates to Medicaid

On or before December 1, 2026, and annually thereafter, the act requires each transportation broker that administers nonemergency medical transportation to medicaid members to submit certain informati

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Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Rep. L. Feret, Sen. L. Daugherty, Rep. M. Carter, Rep. C. Clifford, Rep. J. Jackson, Rep. K. Nguyen, Rep. T. Story, Rep. E. Velasco, Sen. J. Coleman, Sen. T. Exum, Sen. C. Kipp, Sen. M. Snyder
Last action
2026-06-03
Official status
Governor Signed
Effective date
Not listed

Plain English Breakdown

The official summary states the act repeals the state medical assistance and services advisory council. This was missing from the 'what_it_does' list in the candidate explanation but present in the one-sentence summary. I have added it to ensure completeness based on the source.

Updates to Medicaid Rules and Reporting

This law requires transportation brokers to report provider data, changes a term for noncitizens, sets rules for payment notices on therapy cuts, allows jail medication reimbursement, updates community engagement reporting, collects cost ratios from service agencies, and removes an advisory council.

What This Bill Does

  • Requires transportation brokers managing nonemergency medical rides for Medicaid members to send information about their contracted providers to the state department by December 1, 2026, and every year after that.
  • Changes the term 'qualified alien' to 'qualified noncitizen' in Medicaid rules to match federal requirements.
  • Requires a six-month notice and at least one stakeholder meeting before applying new payment cuts for outpatient therapy services.
  • Requires reimbursement for providers licensed to prescribe, dispense, compound, or administer medication-assisted treatment inside jails.
  • Orders the medical services board to create rules by January 1, 2027, that meet federal community engagement standards and requires the state department to publish related data online.
  • Directs the state health department to collect cost ratio information from home- and community-based service agencies and report it to lawmakers.

Who It Names or Affects

  • Transportation brokers who manage nonemergency medical rides for Medicaid members
  • Health care providers offering outpatient therapy or medication-assisted treatment in jails
  • Home- and community-based service provider agencies
  • The state department of health care policy and financing

Terms To Know

Transportation broker
A company that manages nonemergency medical transportation for Medicaid members.
Medication-assisted treatment
Medical care using medication to treat substance use disorders, which this law allows providers in jails to be reimbursed for if licensed.
Qualified noncitizen
A term used instead of 'qualified alien' to describe certain immigrants who may be eligible for Medicaid benefits.

Limits and Unknowns

  • The law does not specify the exact format or details required in the transportation broker reports.
  • It is unclear how much funding will support these new reporting and meeting requirements.
  • The specific impact of community engagement rules on enrollment numbers has not been determined yet.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

L.001

HOU Health & Human Services

Passed [*]

Plain English: This amendment changes the bill to define outpatient therapy services and requires the state department to give providers at least six months' notice before applying new payment reductions for those specific therapies.

  • It adds a definition stating that 'outpatient therapy services' are professional care from occupational, physical, or speech therapists given outside of a hospital.
  • It requires the state department to notify affected providers at least six months in advance if they plan to start new payment reductions for outpatient therapy.
  • The amendment text only shows specific line changes and does not include the full context of what was removed from lines 23 through 27 on page 3.
  • It is unclear exactly how this change affects other types of medical services or payment rules that are not outpatient therapy.
L.002

HOU Health & Human Services

Passed [*]

Plain English: This amendment adds a rule that automatically cancels the state board's power to make new regulations if federal laws requiring community engagement for Medicaid are removed.

  • It changes how the bill refers to rules by adding language about repealing them under certain conditions.
  • It updates the reference to federal law to ensure coverage is kept with the least amount of paperwork and burden on people applying or staying enrolled.
  • It states that if the federal requirement for community engagement in Medicaid (Title XIX) is repealed, the state board's authority to create rules based on this bill will also end.
  • The amendment text includes an email address ending in 'coleg.gov', which appears unusual and may be a typo or placeholder that needs verification.
  • The exact date when the state board's authority would stop depends on future federal law changes, so it is not known if this will ever happen.
L.004

HOU Health & Human Services

Passed [*]

Plain English: This amendment requires large home- and community-based service agencies to report detailed financial data about how much they spend on direct care workers versus administrative costs.

  • Agencies serving more than 100 Medicaid members must submit a specific cost ratio showing spending on direct care compared to general expenses.
  • Providers must break down worker pay into categories like base wages, overtime, taxes, and benefits for both employees and independent contractors.
  • The State Department will collect this data by September 30, 2027, and share a report with legislative committees by December 31, 2027.
  • The text does not define the specific penalties if an agency fails to submit the required information.
  • It is unclear how 'affiliated or related entities' will be identified for reporting purposes without further guidance.
L.005

Second Reading

Passed [**]

Plain English: This amendment adds a new rule requiring the state to publish monthly data about Medicaid applications and renewals on its website starting in March 2027.

  • The State Department must post specific enrollment numbers online every month beginning March 1, 2027.
  • The published data will include counts of approved and denied new applications as well as renewal requests.
  • Reports must also show how many people kept their coverage using existing records without sending in more information.
  • The state is required to share the rate at which members rejoin the program within 90 days after a denial.
  • The amendment does not specify exactly what 'other data' the department might choose to add beyond the listed items.
  • If federal rules about community engagement are removed, this new reporting requirement will automatically end without further action by the state legislature.
L.006

Second Reading

Passed [**]

Plain English: This amendment adds a detailed list of specific costs and data that transportation brokers must report to the state regarding how they pay and support direct care workers.

  • Requires reporting total medical assistance money and service volume for home- and community-based services, separated by employee type.
  • Mandates breaking down payments into categories like wages, overtime, bonuses, paid leave, health insurance, and retirement contributions.
  • Adds requirements to report costs for employer taxes, recruitment incentives, training, supervision, and other operational expenses needed to keep workers safe and compliant.
  • The amendment text only shows the new list of reporting items but does not explain what specific rules were removed from the original bill.
  • It is unclear how often these detailed reports must be submitted or who exactly counts as a 'direct care worker' under this definition.
L.008

Second Reading

Passed [**]

Plain English: This amendment updates Colorado Medicaid laws to clarify that noncitizens who arrived before August 22, 1996, are eligible for benefits, while those arriving on or after that date must wait five years unless they are pregnant women or children under nineteen.

  • Updates the legal definition of 'qualified alien' to match federal law terms regarding noncitizens.
  • Confirms that qualified noncitizens who entered the U.S. before August 22, 1996, receive full Medicaid benefits immediately if they meet other rules.
  • Requires a five-year waiting period for qualified noncitizens entering on or after August 22, 1996, before they can get standard Medicaid coverage.
  • Allows pregnant women and children under nineteen who are qualified noncitizens to receive benefits during the five-year wait if federal funding is available.
  • The amendment text uses technical legal language that requires matching specific sections of existing state law which are not fully provided here.
  • Eligibility depends on receiving 'federal financial participation,' meaning coverage may change if the federal government does not provide funding for these groups.
L.009

Second Reading

Passed [**]

Plain English: This amendment changes the law citation used in a report, lowers the number of members needed to trigger certain rules from one hundred to thirty with new wage requirements, and adds privacy protections for specific data.

  • Updates a reference to state law by replacing section '25.5-5-428' with section '25.5-6-120'.
  • Lowers the threshold from one hundred members to thirty members, which adds base wage requirements set by the State Department.
  • Allows information collection specifically for agencies that serve thirty or fewer members.
  • States that certain data is not subject to public disclosure under the Colorado Open Records Act.
  • The amendment text only describes changes to a committee report and does not explain what section '25.5-6-120' actually requires.
  • It is unclear exactly which specific information can be collected from agencies serving thirty or fewer members.
L.010

Second Reading

Passed [**]

Plain English: This amendment removes a phrase from the bill that required transportation brokers to submit reports for each specific reporting period.

  • The words 'FOR EACH REPORTING PERIOD' are deleted from page 1, line 7 of the proposed floor amendment.
  • Because this text only shows a small deletion without the full context of the sentence or bill, it is unclear exactly how removing these words changes what information brokers must submit.
  • The specific new reporting schedule or requirements that replace the deleted phrase are not explained in this amendment.
L.011

Second Reading

Passed [**]

Plain English: This amendment requires the state to hold at least one meeting with stakeholders before December 1, 2026, to discuss how new payment rules for outpatient therapy will be applied and enforced.

  • The bill now mandates that officials prepare and host a minimum of one stakeholder meeting regarding changes to multiple procedure payments for outpatient therapy services.
  • The amendment text does not specify who exactly counts as a 'stakeholder' or the exact date by which this meeting must occur.
  • It is unclear what specific metrics will be discussed because those details have not been decided yet and are only meant to be talked about during the meeting.

Bill History

  1. 2026-06-03 Governor

    Governor Signed

  2. 2026-06-02 Governor

    Sent to the Governor

  3. 2026-06-02 Senate

    Signed by the President of the Senate

  4. 2026-06-02 House

    Signed by the Speaker of the House

  5. 2026-05-04 Senate

    Senate Third Reading Passed - No Amendments

  6. 2026-05-01 Senate

    Senate Second Reading Passed - No Amendments

  7. 2026-04-29 Senate

    Senate Committee on Health & Human Services Refer Unamended - Consent Calendar to Senate Committee of the Whole

  8. 2026-04-21 Senate

    Introduced In Senate - Assigned to Health & Human Services

  9. 2026-04-16 House

    House Third Reading Passed - No Amendments

  10. 2026-04-14 House

    House Third Reading Laid Over Daily - No Amendments

  11. 2026-04-13 House

    House Second Reading Special Order - Passed with Amendments - Committee, Floor

  12. 2026-03-16 House

    House Second Reading Laid Over Daily - No Amendments

  13. 2026-03-11 House

    House Committee on Health & Human Services Refer Amended to House Committee of the Whole

  14. 2026-02-18 House

    Introduced In House - Assigned to Health & Human Services

Official Summary Text

On or before December 1, 2026, and annually thereafter, the act requires each transportation broker that administers nonemergency medical transportation to medicaid members to submit certain information to the department of health care policy and financing (state department) regarding transportation providers that the transportation broker contracts with. Beginning January 1, 2027, the state department is required to include this information in its annual 'SMART Act' presentation.
The act changes the term 'qualified alien' to 'qualified noncitizen' to align with federal requirements.
If the state department plans to implement, apply, or enforce new multiple procedure payment reductions for outpatient therapy services, the act requires the state department to provide notice to the impacted providers of the changes at least 6 months prior to implementing the changes and to hold at least one stakeholder meeting to discuss the payment reductions.
The act requires the state department to reimburse a provider who is licensed and authorized to prescribe, dispense, compound, or administer medication-assisted treatment in a jail setting.
The act requires the medical services board to adopt rules before January 1, 2027, to comply with federal community engagement requirements and requires the state department make available on its website data on the community engagement requirements and their impact on medical assistance enrollment.
The act requires the state department to collect direct care service cost to administrative cost ratio information from home- and community-based service provider agencies and submit a report to the general assembly detailing the information collected.
The act repeals the state medical assistance and services advisory council.
(Note: This summary applies to this bill as enacted.)