HB 1432: Health-Care Payment Programs - Colorado

Final Act → Signed Act · 3 edits · Jun 4, 2026

MINOR

This bill updates the legal text of HB 1432 to reflect its final passage and signing into law. The substantive policy content remains largely identical to the previous version, with changes primarily focused on formatting, capitalization, and minor text corrections rather than new policies or funding adjustments.

Scope change

The bill's scope and applicability remain unchanged; the text now formally represents the signed legislation.

TECHNICAL

Updated the header to indicate the bill has been signed into law and listed the full roster of sponsors.

Corrected spacing, capitalization, and spelling errors within the statutory text (e.g., changing 'set vices' to 'services' and 'hcalth-catc' to 'healthcare').

Adjusted formatting of section headers and subsection numbering to align with standard legislative style.

Rerevised → Final Act · 5 edits · Jun 3, 2026

MODERATE

The bill was finalized to prohibit the state from reducing hospital payments for quality performance and to require that any new quality incentive programs must include a specific metric for workplace violence. It also increased the maximum allowable funding percentage for these programs and added rules to reduce administrative burdens on hospitals.

Scope change

The bill's scope expanded to explicitly ban the rescission or amendment of state plan amendments that reduce hospital payments, and it added new requirements for program design and funding limits.

REQUIREMENT

Added a mandatory requirement that the Hospital Quality Incentive Program must include a performance metric related to workplace violence.

Added a requirement that performance measures must be based on factors reasonably within hospitals' control and designed to minimize administrative burden.

Modified the rules for program renewal to allow measures that meet program goals to be renewed after the initial three-year period expires.

FISCAL

Increased the maximum funding percentage for hospital quality incentives from 7% to 9% of total reimbursements, pending formal program approval.

ENFORCEMENT

Added a prohibition on the Department of Health Care Policy and Financing from implementing any rules that reduce, recoup, or redistribute hospital supplemental medical assistance payments.

Revised → Rerevised · 3 edits · May 12, 2026

MINOR

The bill was re-revised to include additional Senate sponsors and update the reading status to reflect amendments adopted in the Second House. The most significant substantive change involves the removal of specific text regarding the annual calculation and maximum percentage cap (seven percent) for Quality Incentive Program payments to hospitals, which may alter how funding limits are enforced.

Scope change

The bill's scope regarding the Quality Incentive Program funding limits was narrowed by deleting the specific statutory language that mandated an annual calculation and a seven-percent cap on payments relative to hospital reimbursements.

FISCAL

Deleted the requirement that payments under the Quality Incentive Program be computed annually and capped at seven percent of total hospital reimbursements from the previous fiscal year.

TECHNICAL

Added the label '3rd Reading Unamended' and updated the date to May 12, 2026, indicating the current legislative status.

SCOPE

Added three new Senate sponsors (Catlin, Coleman, and Kipp) to the bill's sponsorship list.

Reengrossed → Revised · 1 edit · May 11, 2026

MINOR

The bill was reclassified from 'Reengrossed' to 'Revised' to reflect amendments adopted during the second reading in the second house. The most significant substantive change is the removal of a provision that would have capped the maximum percentage of healthcare payments at seven percent until a specific hospital quality incentive program was formally approved, after which the cap would have risen to nine percent. This deletion means the bill no longer includes these specific tiered funding limits tied to the approval of a new program.

Scope change

The bill's scope regarding payment percentage caps has been narrowed by removing conditional limits based on future program approvals.

FISCAL

Deleted a clause limiting healthcare payments to a maximum of seven percent of total hospital reimbursements until a specific quality incentive program is approved, and then allowing an increase to nine percent.

Engrossed → Reengrossed · 3 edits · May 9, 2026

MINOR

The bill was reengrossed to include additional sponsors and updated the legislative summary to reflect that it has passed the House of Introduction. The substantive policy text regarding the Department of Health Care Policy and Financing remains unchanged in this version.

TECHNICAL

Added seven new sponsors to the House sponsorship list (Bacon, Boesenecker, Bradley, Brown, Carter, Duran, English, Flanell, Froelich, Gonzalez R., Hamrick, Johnson, Lindsay, McCluskie, McCormick, Nguyen, Rydin, Story, Titone, Winter T., Woodrow).

Updated the legislative summary header from 'ENGROSSED' to 'REENGROSSED' and changed the disclaimer text to indicate amendments were adopted in the House of Introduction.

Added a date stamp (May 9, 2026) and a '3rd Reading Unamended' notice to the summary page.

Introduced → Engrossed · 5 edits · May 8, 2026

MODERATE

The bill was amended to shift from withdrawing a specific state plan amendment to establishing a new, permanent 'Hospital Quality Incentive Program' within existing statutes. The changes replace a prohibition on retrospective payment cuts with a system that allows hospitals to receive additional performance-based payments, capped at 7% (rising to 9%) of total reimbursements, provided the program meets specific quality and safety standards.

Scope change

The bill's scope changed from a temporary legislative fix to stop a specific federal approval process to a permanent statutory framework creating a new ongoing incentive program for hospital quality improvement.

REQUIREMENT

Replaced the requirement to withdraw State Plan Amendment 24-0043 with a mandate to create and maintain a 'Hospital Quality Incentive Program' under C.R.S. 25.5-4-402.

Added specific requirements for the program to include metrics on workplace violence and to align with federal quality standards.

FISCAL

Authorized additional payments to hospitals based on performance metrics, capped at 7% of total reimbursements (increasing to 9% after board approval), replacing the previous prohibition on such payments.

ENFORCEMENT

Changed the enforcement mechanism from a prohibition on implementing penalties to a requirement for the Enterprise Board to approve program structures, measures, and scoring methodologies.

DEFINITION

Defined the 'Hospital Quality Incentive Program' as the central mechanism for quality improvement, replacing references to the 'Hospital Transformation Program'.

Health-Care Payment Programs

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