Home and Community Based Services Settings Final Rule

In 2014, the federal Centers for Medicare & Medicaid Services (CMS) published a rule requiring Home- and Community-Based Services (HCBS) to be provided in settings that meet certain criteria. The criteria ensure that HCBS participants have access to the benefits of community living and live and receive services in integrated, noninstitutional settings.

The rule went into effect in March 2014, and states originally had five years - until March 2019 - to ensure that their HCBS settings were compliant with the rule.  In May 2017, CMS issued an Informational Bulletin extending the transition period for statewide compliance with the Settings Final Rule by three years, to March 2022.  In July 2020, CMS issued a State Medicaid Director Letter extending the transition period by another year, to March 2023.  Providers need to demonstrate compliance well before the end of the transition period in order to allow time for individuals at noncompliant settings to transition to other settings or funding sources.

The following documents and information relate to Colorado's implementation of the Settings Final Rule.