HB26-1377 • 2026

Managed Care Entity Payments

Joint Budget Committee. The department of human services (CDHS) operates mental health transitional living homes (transitional homes). Part of the funding for transitional homes comes from patient rev

Taxes

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Rep. E. Sirota, Rep. R. Taggart, Sen. J. Amabile, Sen. B. Kirkmeyer, Rep. K. Brown, Sen. J. Bridges
Last action: 2026-04-14
Official status: Senate Committee on Appropriations Refer Unamended - Consent Calendar to Senate Committee of the Whole
Effective date: Not listed

Plain English Breakdown

The official source material does not provide information on how MCE payments will be tracked or reported, nor does it specify if the clarification affects other types of state spending beyond mental health transitional living homes.

Clarification on Managed Care Entity Payments

This bill clarifies that payments from managed care entities (MCEs) to the Colorado Department of Human Services for mental health transitional living homes are not counted as state spending under TABOR.

What This Bill Does

Establishes that if an MCE receives federal funds or state money from HCPF and pays those funds to CDHS, these payments do not count towards state fiscal year spending limits set by TABOR.

Who It Names or Affects

The Department of Human Services (CDHS)
Managed Care Entities (MCEs)

Terms To Know

TABOR: A constitutional amendment in Colorado that limits the amount of revenue the state can collect and spend each year.
Managed Care Entity (MCE): An organization that manages health care services for Medicaid patients under contract with the Department of Health Care Policy and Financing.

Limits and Unknowns

The bill does not specify how MCE payments will be tracked or reported.
It is unclear if this clarification affects other types of state spending beyond mental health transitional living homes.

Bill History

2026-04-14 Senate
Senate Committee on Appropriations Refer Unamended - Consent Calendar to Senate Committee of the Whole
2026-04-13 Senate
Introduced In Senate - Assigned to Appropriations
2026-04-11 House
House Third Reading Passed - No Amendments
2026-04-10 House
House Third Reading Laid Over Daily - No Amendments
2026-04-09 House
House Second Reading Special Order - Passed - No Amendments
2026-04-08 House
House Second Reading Special Order - Laid Over Daily - No Amendments
2026-04-06 House
House Committee on Appropriations Refer Unamended to House Committee of the Whole
2026-04-02 House
Introduced In House - Assigned to Appropriations

Official Summary Text

Joint Budget Committee.
The department of human services (CDHS) operates mental health transitional living homes (transitional homes). Part of the funding for transitional homes comes from patient revenues, including Medicaid-eligible patient revenues. For Medicaid-eligible patients, the patient revenues originate in the department of health care policy and financing (HCPF), HCPF distributes this money to managed care entities (MCEs), and the MCEs then pay CDHS for the services provided at the transitional homes. At least in part, the MCEs serve as passthroughs transferring patient revenues from HCPF to CDHS for transitional homes.
Because MCEs are nonstate entities, the office of the state controller counts the payments from HCPF to MCEs for transitional homes as money leaving the state and then counts the payments from MCEs to CDHS for transitional homes as state fiscal year spending for purposes of section 20 of article X of the state constitution (TABOR).
The bill establishes that, if an MCE receives federal funds or state money from HCPF and pays those funds or that money to CDHS, the funds or money received by CDHS is not included in the calculation of state fiscal year spending for purposes of TABOR.
(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

Current Bill Text

Read the full stored bill text

Second Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
REENGROSSED
This Version Includes All Amendments
Adopted in the House of Introduction
LLS NO. 26-0931.02 Pierce Lively x2059 HOUSE BILL 26-1377
House Committees Senate Committees
Appropriations
A BILL FOR AN ACT
CONCERNING A CLARIFICATION RE GARDING THE TREATMENT OF101
FUNDS THAT ARE TRANSFERRED FROM THE DEPARTMENT OF102
HEALTH CARE POLICY AND FINANCING THROUGH TO THE103
COLORADO DEPARTMENT OF HU MAN SERVICES THAT PASS104
THROUGH A REGIONAL ACCOUNTABILITY ENTITY.105
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov/.)
Joint Budget Committee. The department of human services
(CDHS) operates mental health transitional living homes (transitional
HOUSE
3rd Reading Unamended
April 11, 2026
HOUSE
2nd Reading Unamended
April 9, 2026
HOUSE SPONSORSHIP
Sirota and Taggart, Brown,
SENATE SPONSORSHIP
Amabile and Kirkmeyer, Bridges
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law.
homes). Part of the f unding for transitional homes comes from patient
revenues, including Medicaid-eligible patient revenues. For
Medicaid-eligible patients, the patient revenues originate in the
department of health care policy and financing (HCPF), HCPF distributes
this money to managed care entities (MCEs), and the MCEs then pay
CDHS for the services provided at the transitional homes. At least in part,
the MCEs serve as passthroughs transferring patient revenues from HCPF
to CDHS for transitional homes.
Because MCEs are nonstate entities, the office of the state
controller counts the payments from HCPF to MCEs for transitional
homes as money leaving the state and then counts the payments from
MCEs to CDHS for transitional homes as state fiscal year spending for
purposes of section 20 of article X of the state constitution (TABOR).
The bill establishes that, if an MCE receives federal funds or state
money from HCPF and pays those funds or that money to CDHS, the
funds or money received by CDHS is not included in the calculation of
state fiscal year spending for purposes of TABOR.
Be it enacted by the General Assembly of the State of Colorado: 1
SECTION 1. In Colorado Revised Statutes, add 26-1-143 as2
follows:3
26-1-143. Managed care entity payments - definition. 4
(1) I F A MANAGED CARE ENTITY RECEIVES FEDERAL FUNDS OR5
STATE MONEY FROM THE DEPARTMENT OF HEALTH CARE POLICY AND6
FINANCING AND PAYS THOSE FUNDS OR THAT MONEY TO THE STATE7
DEPARTMENT, THE FUNDS OR MONEY RECEIVED BY THE STATE8
DEPARTMENT IS NOT INCLUDED IN THE CALCULATION OF STATE FISCAL9
YEAR SPENDING.10
(2) AS USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE11
REQUIRES, "MANAGED CARE ENTITY" HAS THE SAME MEANING AS "MCE"12
IN SECTION 25.5-5-402 (9)(b)(III)(B).13
SECTION 2. Safety clause. The general assembly finds,14
determines, and declares that this act is necessary for the immediate15
preservation of the public peace, health, or safety or for appropriations for16
1377-2-
the support and maintenance of the departments of the state and state1
institutions.2
1377-3-