Colorado sets a plan to move county-custody residential care into managed care

The state department convenes a steering committee and works with it to develop transition policies and recommendations. The planning concerns residential treatment services for Medicaid members in the care and custody of a county human or social services department. The committee must include leaders from state health and human services agencies, counties, residential treatment providers, and managed care entities. The department's policies must follow federal funding and managed care rules. The department must convene the committee by July 1, 2026. The committee meets at least monthly through July 1, 2027, and the department must develop policies by April 1, 2027.

The state department implements or begins the transition and reports to the Joint Budget Committee on its progress and results. The transition covers services in qualified residential treatment programs and psychiatric residential treatment facilities for Medicaid members in county human or social services custody. The transition must follow policies and recommendations developed with the steering committee. Quarterly reports cover committee meetings, attendees, topics, and decisions. The later report covers policy outcomes, identified impacts, and recommended legal or budget changes. The department must implement or begin the transition by July 1, 2027. Reports are due by October 1 and December 31, 2026, March 1, 2027, and July 1, 2028.

The law repeals two provisions of state Medicaid law. The bill identifies the provisions by subsection but does not give their contents, so their practical effects cannot be determined from this text. The repeal of subsection 25.5-5-202(5) takes effect July 1, 2026. The repeal of subsection 25.5-5-402(2)(c)(II) takes effect July 1, 2027.