Hospital Provider Fee

House Bill 09-1293, the Colorado Health Care Affordability Act, was signed into law on April 21, 2009. The Act authorized the Department of Health Care Policy and Financing to collect a hospital provider fee to increase Medicaid and Colorado Indigent Care Program (CICP) payments to hospitals, to fund hospital quality incentive payments, and to expand health care coverage in Medicaid and Child Health Plan Plus (CHP+) programs.

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 2014, increased hospital reimbursement by $802 million with no General Fund expenditure.

What are the program milestones?

  • Implemented Medicaid eligibility for parents of children on Medicaid up to 100% of the Federal Poverty Level (FPL).
  • Implemented Child Health Plan Plus (CHP+) eligibility for children and pregnant women up to 250% FPL.
  • Implemented Medicaid Buy-In Programs for people with disabilities.
  • Implemented Medicaid benefits for adults without Medicaid eligible, dependent children.
  • Implemented 12-month continuous eligibility for children enrolled in Medicaid.
  • 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