Nursing Facility Minimum Wage Supplemental Payment

On May 28, 2019, Governor Jared Polis signed into law House Bill (H.B.) 19-1210 allowing local governments within the State of Colorado to increase their minimum wage higher than the statewide minimum wage. Part of the bill stipulates that any Medicaid nursing facility that resides in a local government that increases its minimum wage higher than the statewide minimum wage is eligible for a supplemental payment that helps bridge the gap for the facility to increase its wages with the minimum wage of the local government. It also stipulates that any nursing facility that is adjacent to a local government that increases its minimum wage higher than the statewide minimum wage is eligible for the supplemental payment. The Department of Health Care Policy and Financing (the Department) has mandated in rule that an adjacent nursing facility is any nursing facility within 15 driving miles of a nursing facility that resides in a local government that increases its minimum wage higher than the statewide minimum wage. This supplemental payment is called the Nursing Facility Minimum Wage Supplemental Payment.

The statewide minimum wage increased to $12.00 per hour on January 1, 2020. For every year thereafter, the statewide minimum wage will be adjusted for cost of living increases as measured by the Consumer Price Index for Colorado.

The City and County of Denver minimum wage increased to $12.85 per hour on January 1, 2020. On January 1, 2021, it is set to increase to $14.77 per hour, and then to $15.87 on January 1, 2022. For every year thereafter, the minimum wage for the City and County of Denver will be adjusted by the Consumer Price Index for Colorado.

The Nursing Facility Minimum Wage Supplemental Payment for eligible nursing facilities will be calculated using data from calendar year 2020, where the wage gap between the statewide minimum wage and the minimum wage of the City and County of Denver is $0.85. An eligible facility must submit an application outlining their payroll journal data for calendar year 2020 in order to receive the supplemental payment. The documents on this website will assist a nursing facility in determining whether it is eligible and if it is, how to apply for the supplemental payment.