This bill will implement and fund federally authorized Medicaid services related to health-related social needs and reentry services for justice-involved individuals, using state savings generated by those federal programs.
KEY PROVISIONS
Creation of Two Dedicated Cash Funds
Establishes:
A Health-Related Social Needs Cash Fund
A Reentry Services Cash Fund
These funds will receive transfers equal to state savings resulting from new federal Medicaid funding.
Use of Funds
Health-Related Social Needs Fund: Used to cover services such as housing navigation, food access, transportation, and other social supports.
Reentry Services Fund: Used to support services for justice-involved individuals (e.g., people transitioning out of incarceration), such as care coordination, mental health support, or housing assistance.
Peer Support Workforce Development
The Department of Health Care Policy and Financing (HCPF) must build a workforce of peer support providers to help deliver these Medicaid-authorized services.
This complies with federal terms for the expanded Medicaid waiver coverage.
Additional Spending Authority
HCPF is authorized (subject to annual legislative appropriation) to spend money from the Affordable Housing Support Fund to support housing-related services connected to health-related social needs.
Appropriations Adjustments
The bill makes and reduces appropriations across several state agencies to reflect the new Medicaid funding structure:
Department of Health Care Policy and Financing (HCPF)
Department of Corrections
Department of Human Services
Department of Local Affairs (DOLA)
Overall Effect
Leverages federal Medicaid waivers to expand social and reentry support services in Colorado.
Reinvests state cost savings into non-clinical services that improve health outcomes.
Builds infrastructure (including peer support workforce) for long-term service delivery.
Improves continuity of care for formerly incarcerated individuals and populations with social risk factors.
Summary
Joint Budget Committee. The department of health care policy and financing (state department) received federal authorization to provide coverage for health-related social needs and to provide reentry services to justice-involved individuals through the medicaid program. The federal authorization requires the savings of state money realized from the federal authorizations to be spent on similar services.
The bill creates 2 cash funds, one for health-related social needs
and one for reentry services for justice-involved individuals. The bill requires the state treasurer to transfer the savings of state money realized from each federal authorization to the respective cash fund. Subject to annual appropriation by the general assembly, the state department may expend money from the funds to provide health-related social needs or reentry services to justice-involved individuals.
The bill requires the state department to develop a workforce to
provide peer support services in order to comply with the terms of the federal authorization for health-related social needs.
The bill authorizes the state department, subject to annual
appropriation by the general assembly, to spend money from the affordable housing support fund for services authorized by the federal authorization to provide coverage for health-related social needs.
The bill makes and reduces appropriations to the state department,
the department of corrections, the department of human services, and the department of local affairs.
