CO SB044

Amends Colorado law to allow quality incentive payments to prepaid inpatient health plan (PIHP) contractors to be distributed within a reasonable period of time as specified in the contract, rather than within a fixed six-month timeframe.

Quality incentive payments remain contingent on contractors substantially exceeding predetermined quality indicators based on broadly accepted performance measures adopted by the state board and agreed upon at contract outset.

Quality incentive payments cannot exceed the total cost savings created under the PIHP agreement, as determined by comparing PIHP members with an actuarially equivalent fee-for-service population.

Quality incentive payments are capped at five percent of total Medicaid payments received by the contractor during the PIHP agreement performance period.

Bill includes a safety clause declaring the act necessary for immediate preservation of public peace, health, and safety.