JOINT RELEASE: Laws to Streamline and Improve Medicaid Coverage Go into Effect

DENVER, CO — Three new laws to streamline, simplify and expand health care for Colorado Medicaid recipients go into effect on August 6, 2025. The laws will make health care more accessible for patients by reducing administrative barriers and expanding coverage options for certain conditions.

"As a former case manager for Medicaid members, I understand firsthand the barriers people experience trying to keep their insurance,” said Rep. Lisa Feret, D-Arvada, sponsor of HB25-1162. “This law will help streamline the recertification process by reducing paperwork. This will allow for more providers to complete required paperwork and request permission from the federal government to allow for Medicaid members with stable income to recertify every three years. Health care works best when it’s accessible to patients – and this law is an important step toward a healthier, safer Colorado.”

“While Republicans in DC are creating new hoops to jump through to access basic Medicaid coverage, here in Colorado we’re reducing barriers and making it easier for Coloradans to access the care they need,” said Senator Lindsey Daugherty, D-Arvada, sponsor of HB25-1162. “This new law makes commonsense improvements to our administration of Medicaid to improve efficiency for providers and ease the burden on Colorado workers and families to ensure that everyone who is eligible is able access care. I’m proud of our work this year to protect access to affordable, quality health care for every Coloradan.”

HB25-1162 removes unnecessary administrative barriers to streamline health care for Coloradans. Specifically, this law narrows the questions providers are required to ask patients that determine Medicaid eligibility, mainly for long-term care needs. The Department of Health Care Policy and Financing (HCPF) has until December 31, 2026, to create and implement the new questions. This law also streamlines Medicaid reenrollment for patients with stable incomes to further reduce red tape for Coloradans. 

To help prevent accidental disenrollment from Medicaid, this law also allows the HCPF to submit requests to allow a patient's redetermination, or eligibility for Medicaid, timeline to be extended three years. Colorado’s HCPF is permitted to submit three-year extensions; however, it is dependent upon the federal government to approve them.   

“We’ve made important progress toward lowering the cost of health care in Colorado, and this law will save patients who receive parenteral nutrition both time and money,” said Rep. Gretchen Rydin, R-Littleton, sponsor of SB25-084. “This law, going into effect soon, will expand provider options for Medicaid patients who need parenteral nutrition. In Colorado, we’re focused on making sure Medicaid patients can receive the care they need."

SB25-084, also sponsored by Senator Kyle Mullica, D-Thornton, Senate Minority Leader Cleave Simpson, R-Alamosa, and Rep. Mary Bradfield, R-El Paso County, will expand access to and save Coloradans money on parenteral nutrition services. Parenteral nutrition is nutritional support provided to patients directly into their bloodstream through a catheter. 

This law establishes Medicaid reimbursement rates for parenteral nutrition to help diversify the number of infusion pharmacies that offer this service to Colorado patients. This will make it easier for Coloradans using Medicaid to find an infusion pharmacy that accepts their insurance, saving them time and money. Under the new law, dispensing fee rates are capped at 30 percent of the infusion pharmacy’s administrative cost to prepare and dispense for the first year.

HB25-1213, also sponsored by Rep. Feret, Sen. Daugherty, as well as Sen. Matt Ball, D-Denver and Rep. Weinberg, R-Loveland, goes into effect on August 6, 2025, and makes important Medicaid program updates so Coloradans can receive consistent, accessible health care coverage. This law improves access and streamlines health care coverage through several administrative, eligibility, billing and review changes to the Medicaid program.

The GOP budget will have devastating effects on every sector of Colorado’s health care system, including Colorado hospitals, clinics, and other providers that could lose up to $900 million in annual federal Medicaid funding – mainly caused by a forced reduction in provider fees. The cuts to Medicaid will result in an estimated 140,000-230,000 Coloradans suddenly losing health care coverage.