Tuesday, April 21, 2009

GOV. RITTER SIGNS HISTORIC HEALTHCARE AFFORDABILITY ACT


Gov. Bill Ritter today signed into law the historic Colorado Healthcare Affordability Act, which will provide health coverage to more than 100,000 uninsured Coloradans and reduce uncompensated care and cost shifting.

 

House Bill 09-1293 is the most significant health reform legislation in Colorado in four decades.

 

"At no increased cost to taxpayers, the Colorado Healthcare Affordability Act will allow us to provide critical health services to people who need those services the most," Gov. Ritter said. "This historic legislation will significantly address the crisis of the uninsured while also reducing uncompensated care and cost-shifting in our healthcare system.

 

"This legislation would be groundbreaking in a good economy, but it means even more in a down economy as Colorado families struggle to make ends meet," the Governor said.

 

By partnering with hospitals, the Colorado Healthcare Affordability Act will allow the state to generate an additional $600 million a year through a provider fee, and draw down $600 million in federal Medicaid matching funds. The combined $1.2 billion will support Medicaid and the Child Health Plan Plus expansions and be used to improve hospital reimbursement rates for service provided through Medicaid and the Colorado Indigent Care Program (CICP).

 

Uninsured patients and Medicaid underpayment to hospitals are two of the primary causes of cost-shifting and rising healthcare costs for consumers, businesses and providers. By improving access to coverage and increasing hospital reimbursement rates, the Colorado Healthcare Affordability Act will address both of those drivers and help stem rising costs across the system. In turn, this will benefit businesses and families by reducing the cost shift and the rate at which healthcare costs are increasing.

 

The Colorado Hospital Association, the Department of Health Care Policy and Financing and the Governor's Office worked together for nearly a year to develop House Bill 1293, which passed both the House and the Senate quickly with more than 40 co-sponsors and bipartisan support.

 

"Colorado hospitals are pleased to have been a part of this important policy effort to improve access to affordable healthcare services for those most at risk," said Colorado Hospital Association (CHA) President and CEO Steven Summer. CHA represents 90 hospitals and health systems throughout Colorado. "This new law is not a silver bullet solution to all of our state's healthcare problems, but it is certainly a giant step forward."

 

Bill sponsor Rep. Jim Riesberg said, "This is the most vital healthcare expansion we have made in years. Especially in this time of economic crisis, expanding coverage for the most vulnerable among us is a crucial and ingenious step to keeping healthcare affordable for everyone."

 

Sen. Betty Boyd, chair of the Health and Human Services committee and one of the primary bill sponsors, said, "Health impacts the entire state: healthy employees, children and businesses translate into successful businesses, productive workers, high-achieving students, and a thriving economy. The Colorado Healthcare Affordability Act will make healthcare affordable for all Coloradans, especially those who need it, and will make it affordable for providers who offer it."

 

More than 40 states have already implemented this financing strategy for health programs, including more than 20 states that have hospital provider fees. Colorado passed a similar proposal last year with nursing homes (HB08-1114).

 

"The current healthcare system is not sustainable. This proposal came from a group of stakeholders – the hospitals – agreeing to take on the burden of the fee so that a meaningful solution could be reached," said Russ Johnson, CEO of the San Luis Valley Regional Medical Center. "In many rural communities, the hospital is the only healthcare provider.  At the same time, there is often a large proportion of residents that are uninsured, or on Medicaid or CICP, so the provider fee will be very beneficial to rural hospitals in those communities."

 

The plan will be submitted to the federal Centers for Medicare & Medicaid Services (CMS) for final approval. Implementation is expected to begin in the spring of 2010. A 13-member Oversight and Advisory committee will be responsible for working with the Department of Health Care Policy and Financing to implement the new law.