Senate Bill 21-286 Summary

• Creates Part 18 of Article 6 of Title 25.5 to distribute federal funds from the American Rescue Plan Act (ARPA) Section 9817, which provides a one-time 10-percentage-point increase in the federal matching rate for Medicaid home- and community-based services.

• Requires the State Department of Health Care Policy and Financing to develop a spending plan for the enhanced federal funding, which may include provider rate increases, system reforms, workforce development, infrastructure investments, and support for organizations impacted by COVID-19.

• Establishes the Home- and Community-Based Services Improvement Fund in the state treasury and transfers $260,730,099 from the general fund, with additional amounts transferred based on actual federal savings achieved through the enhanced match.

• Requires the State Department to submit the spending plan to the Joint Budget Committee for approval before implementation and to submit quarterly reports on expenditure status, stakeholder engagement, and remaining federal funds.

• All provisions automatically expire July 1, 2025, limiting the use of ARPA funds to the authorization period under federal law; appropriates $378,843 for fiscal year 2021-22 to support implementation staff and costs.