The Centers for Medicare & Medicaid Services has approved Colorado Medicaid’s proposal to collect a hospital provider fee, which is expected to yield $1.2 billion after federal matching funds are included.
Gov. Bill Ritter’s office and the Colorado Hospital Association developed the Colorado hospital provider fee, which is designed to insure an additional 100,000 residents and increase reimbursement to hospitals.
“This is a great day for Colorado,” said Ritter. “This will pay off in both fiscal and personal health for our state and its residents and will be accomplished without additional costs to the general fund.”
Ritter signed the Colorado Health Care Affordability Act on April 21, 2009, to authorize the department to collect the hospital provider fee, a funding source eligible for federal matching funds when used to reimburse Medicaid covered services.
“More uninsured Coloradans will have access to health coverage as early as May 1 thanks to the diligent efforts of the state in working with hospitals and health systems throughout Colorado,” said Steven J. Summer, president and CEO of the CHA. “The provider fee also helps reduce un-reimbursed healthcare costs, which in turn benefits all Colorado citizens and businesses by reducing the shifting of costs to the private sector.”
The Hospital Provider Fee Oversight and Advisory Board, comprised of representatives from urban and rural hospitals, the CHA and private physicians, has worked since June 2009 to guide the department to meet the goals of the Affordability Act, according to Joan Henneberry, the CHA's executive director.
The first phase will be implemented on May 1.