Healthcare Affordability and Sustainability Fee

The Colorado Healthcare Affordability and Sustainability Enterprise Act of 2017, Section 25.5-4-402.4, Colorado Revised Statutes, created the Colorado Healthcare Affordability and Sustainability Enterprise (CHASE) as a government-owned business within the Department of Health Care Policy and Financing to collect a healthcare affordability and sustainability fee from hospitals to provide business services to Colorado hospitals.  These business services include:

  • Obtaining federal matching funds to increase Health First Colorado and Colorado Indigent Care Program (CICP) payments to hospitals, to fund hospital quality incentive payments, to expand health care coverage in the Health First Colorado and Child Health Plan Plus (CHP+) programs, and to reduce cost-shifting to private payers. 
  • Consulting with hospitals to help them improve cost efficiency, patient safety, and clinical effectiveness.
  • Advising hospitals regarding potential changes to federal and state laws and regulations governing Medicaid.
  • Providing coordinating services to hospitals to help them adapt and transition to any new or modified performance tracking and payment systems for the Medicaid program.
  • Providing funding for a health care delivery system reform incentive payments program.

How does the Healthcare Affordability and Sustainability Fee work?

  • A fee, not to exceed six percent of net patient revenues, is assessed on hospital providers. This fee is then matched by federal dollars.

Who provides oversight?

  • A 13-member CHASE Board including five hospital members; one statewide hospital organization member; one health insurance organization or carrier member; one health care industry member; two consumers; one health insurance member; and, two Department of Health Care Policy and Financing members.
  • Additional information about the CHASE Board, including meeting agendas and minutes, can be found at under “For Our Stakeholders.”

Program Contact

Nancy Dolson