Governor Signs Medicaid Cost Containment Bill

Positions state to be better prepared for future downturns

Medicaid Cost Containment Bill Signing - May 29, 2018


May 29, 2018

Media Contact:
Marc Williams

Denver, CO – Today Governor John Hickenlooper signed Senate Bill 18-266, which better enables the Department of Health Care Policy and Financing to control costs within Medicaid, Child Health Plan Plus (CHP+) and related programs.

“Whether you wear your heart on your sleeve or make decisions with your financial cap firmly in place, you'll like this bill,” said Kim Bimestefer, executive director for the Department. “It helps us better support and care for individuals when they are the sickest and most vulnerable, implements programs to better control claim costs in the near term, better prepares us for economic volatility in years to come, and aligns our programs with industry standards to streamline Medicaid administration for doctors and hospitals.”

The bill has four main components – creation of a program to review hospital admissions and improve member care coordination upon discharge; funding for innovative tools that support member care pathways based on quality and cost; additional safeguards to prevent inappropriate claim payments; and funding for a new unit in the Department that pursues cost control strategies, value-based payments, and other innovations to improve quality for Medicaid and CHP+ members, consumers, employers and taxpayers.

The bill passed the House and Senate with unanimous support led by Senator Lundberg and Representative Young of the Joint Budget Committee, with 19 additional Senators and 46 additional Representatives signed on as co-sponsors.

The bill will be implemented in phases to secure stakeholder feedback, craft required state rules, and obtain federal approval.

About the Colorado Department of Health Care Policy and Financing: The Department administers Health First Colorado (Colorado's Medicaid Program) and Child Health Plan Plus as well as a variety of other programs for Coloradans who qualify. For more information about the Department, please visit