Jun. 4, 2012
DENVER—A bill that creates a path to improve and lower the cost of Medicaid services was signed into law today by Gov. John Hickenlooper. House Bill 1281, sponsored by state Rep. Cheri Gerou, creates the Medicaid Payment Reform Pilot Program to seek and identify efficient payment methodologies within Medicaid.
“Entitlement spending is out of control,” Gerou, R-Evergreen, said. “While we’re still waiting for Democrats to join us in broad based entitlement reform, modest proposals like this program will maintain our focus on reducing costs and eliminating waste.”
Under the new law, Medicaid providers will submit program proposals to the Department of Health Care Policy and Financing that outline potential improvements for the state’s Medicaid payment process. DHCPF will establish trial periods for programs that show potential in streamlining administrative structures and contract management for Medicaid managed care.
Programs approved for trial by DHCPF will be implemented for two to five years, with the goal of creating a payment program that improves health outcomes, patient satisfaction and that puts Medicaid spending on a more sustainable path.
“This pilot program brings ideas from the public and private sector together to seek a solution that works best for Colorado,” Gerou added. “That’s good public policy.”