Hospital Provider Fee

The Colorado Health Care Affordability Act, Section 25.5-4-402.3, Colorado Revised Statutes, authorizes the Department of Health Care Policy and Financing to collect a hospital provider fee to increase Health First Colorado (Colorado's Medicaid Program) and Colorado Indigent Care Program (CICP) payments to hospitals, to fund hospital quality incentive payments, and 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.

How does the Hospital Provider 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.

What is the total hospital funding?

  • Since implementation in spring 2010 through September 2016, increased hospital reimbursement by $1.4 billion with no General Fund expenditure.

What are the program milestones?

  • Implemented Health First Colorado eligibility for adults up to 133% of the Federal Poverty Level (FPL).
  • Implemented Child Health Plan Plus (CHP+) eligibility for children and pregnant women up to 250% FPL.
  • Implemented Health First Colorado Buy-In Programs for people with disabilities.
  • Implemented 12-month continuous eligibility for children enrolled in Health First Colorado.
  • Implemented quality incentive payments for hospitals.

Who provides oversight?

  • A 13-member Hospital Provider Fee Oversight and Advisory 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 Board, including meeting agendas and minutes, can be found at under “For Our Stakeholders.”

Program Contact

Nancy Dolson