CO HB1281

Establishes a Medicaid Payment Reform and Innovation Pilot Program to test new payment methodologies including global payments, risk adjustment, risk sharing, and gainsharing within Colorado's existing coordinated care system.

State Department must create a process for contractors to submit payment projects by July 1, 2013, and select projects designed to improve health outcomes, client satisfaction, and control costs while remaining budget-neutral to the state.

Selected pilot projects run for at least two years but no longer than June 30, 2016, with rate calculations for global payments exempt from standard rate-setting requirements under section 25.5-5-408.

State Department must report to the General Assembly on program design by February 1, 2013, with subsequent reports by September 15, 2014 and 2015 analyzing health outcomes, costs, provider participation and satisfaction, and patient satisfaction.

Appropriates $213,079 and 0.8 FTE for fiscal year 2012-2013, including $47,538 for personal services, $5,541 for operating expenses, and $160,000 for general professional services (split between general fund and federal funds).