[{"_1":2,"_100":-5,"_101":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76,88],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6133732,"mediaKeyId","5698498-7cd7afe2aaa10994273d7d0a4c1586ef","parentId",5698498,"title","JBC package rolls back parts of provider increases, reinstates prior authorization and tightens reviews for certain Medicaid services","audioSeconds",5223,"startMs",1417000,"endMs",6640000,"viewUrl","/Search/View?dp=1&key=5698498-7cd7afe2aaa10994273d7d0a4c1586ef&start=1417&end=6640","thumbnailUrl","https://assets.pipeline.soar.com/5698498-7cd7afe2aaa10994273d7d0a4c1586ef/thumbnail_1417000.jpg","articleUrl","/articles/6133732/Colorado/JBC-package-rolls-back-parts-of-provider-increases-reinstates-prior-authorization-and-tightens-reviews-for-certain-Medicaid-services","mediaUrl","https://secure.pipeline.soar.com/6133732-b49d402fea0db20f457a078e0d2b4a76/orig.mp4?Expires=1770432786&Signature=CxMBpy-8b63ISG72-9Vp4x5N9rJiMZQ5A-mUBy1cIikdThXQtQx5LYxpOSMhdllxY5BwjiVV~FvvdTnpvTK2tvyn~iX0PI9pAHkfHs0DczeUDwZJIVU~T~VysRtOD38kTO-OSGVaWYu4lKgAQi0vJrFFiAK~Yr6D2yCnknxGIzkrRCbUQzRZKHXrzW~9f2XzHNNBtTD-tufA7m4UZzyIzhirUdZ5Bx8W5WpNnN-VgFXnW-n3hqiO0NHsnqMRA3HYL6znfDZHX45lxajSkC1Kr2K6WpCNcT8anfsgeo4krJbirQS0zooNXJ8jfMiS45jDmNfAExgs7S-NahuJOHZd7w__&Key-Pair-Id=KUT5TJCACFTXG","author","Colorado State Legislature","date","2025-08-28T00:00:00Z","article","Colorado budget officials told the Joint Budget Committee on Aug. 28 they will roll back portions of recent scheduled increases for Medicaid providers, reinstate some prior‑authorization rules and add claim reviews for certain pediatric autism and other services to slow rapid growth in Medicaid spending.

What officials told the JBC: Mark Ferndino, the governor’s budget director, said the Department of Health Care Policy and Financing (HCPF) will see about $79.1 million in reductions. Governor Jared Polis said providers received increases for July, August and September and that the administration’s action means providers will effectively receive about one quarter of the originally scheduled increase for the year; the administration estimates most provider‑rate changes will take effect Oct. 1.

Specific proposals and rationale presented to the committee include:
- Provider‑rate adjustments: The administration described some actions as rolling back parts of recent increases rather than cutting rates back to pre‑increase levels. For example, the dental and pediatric behavioral‑therapy (PBT/ABA) items were characterized as reducing the recent increases (Ferndino: “those were what the increases are…Reductions are smaller than that”). Ferndino said the PBT change moves to about 95 percent of the benchmark used for reimbursement.
- Pediatric behavioral therapy and autism (PBT/ABA): The administration cited rapid growth in utilization and cost for PBT/ABA services (cost rising from about $51 million to $207 million over a few years while served population rose more modestly). The package proposes a rate adjustment (to 95% of benchmark) and implementation of pre‑ and post‑claim reviews; Ferndino noted the program is the subject of a federal Office of Inspector General review and that utilization grew substantially after some prior requirements were removed.
- Prior authorization reinstatements and utilization controls: The packet would reinstate prior authorization for outpatient psychotherapy aligned to clinical best practices after the committee saw a 17 percent utilization increase when prior authorization was removed. It would also implement a prior authorization threshold for definitive drug testing after a set number of annual tests (16 tests without authorization; additional tests require review) and add pre/post claim reviews for pediatric ABA codes.
- Continuous coverage for young children: Ferndino said the federal waiver that would allow continuous coverage for children up to age 3 was denied by federal authorities; the denial means the state will not implement continuous coverage and that change is estimated to save about $5.6 million.

Why officials argue this is necessary: Ferndino and the governor pointed to unusually rapid growth in Medicaid general‑fund spending and to HR 1’s revenue hit. Ferndino said Medicaid’s share of the General Fund has risen significantly over the last decade, and he warned that without measures to slow growth the program could consume a disproportionate share of future budget capacity.

What officials and legislators said about the tradeoffs: Legislators raised concerns that changing planned increases midyear harms providers who have budgeted and given raises based on the earlier increases. Senator and representatives asked whether the Joint Budget Committee or the administration could find alternative savings elsewhere to avoid cutting provider support. Ferndino said the state must balance short‑term and long‑term pressures and outlined three control levers for Medicaid—rates, covered services and covered population—saying the state must consider all three.

Implementation and approvals: Ferndino said some changes will require federal approvals or notification to the Centers for Medicare & Medicaid Services before full implementation; the administration plans to provide more detailed implementation dates and to work with HCPF on timing.

Ending: Budget staff said the JBC can revisit or replace specific cuts during the February budget process, and officials pledged to work with stakeholders while laying out the short‑term package to keep the state solvent this fiscal year.","mediaType","Video","parentTitle","Joint Budget Committee [Aug 28, 2025]","oneSentenceSummary","Colorado budget staff presented to the Joint Budget Committee on Aug. 28 a package to reduce HCPF spending by roughly $79.1 million, including partial rollbacks of recent provider increases, reinstatement of some prior authorizations and new pre‑/post‑claim reviews for pediatric autism services.","taxTitle","Joint Budget Committee, YEAR-ROUND COMMITTEES, Committees, Legislative, Colorado","taxId",45208,"location","Colorado","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":81,"_47":82,"_49":83,"_51":84,"_53":85,"_55":56,"_57":58,"_59":86,"_61":62,"_63":64,"_65":87,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6133736,"Polis and Budget Office outline $252 million in midyear cuts, tap reserves and cash funds to balance Colorado budget",5954,1012000,6966000,"/Search/View?dp=1&key=5698498-7cd7afe2aaa10994273d7d0a4c1586ef&start=1012&end=6966","https://assets.pipeline.soar.com/5698498-7cd7afe2aaa10994273d7d0a4c1586ef/thumbnail_1012000.jpg","/articles/6133736/Colorado/Polis-and-Budget-Office-outline-252-million-in-midyear-cuts-tap-reserves-and-cash-funds-to-balance-Colorado-budget","https://secure.pipeline.soar.com/6133736-5d18671bcc33b81493dd84e94bfbd8a5/orig.mp4?Expires=1770432786&Signature=FJFNiwbrQzmzTbZ9p0N7axsxNmkvogxqZCgOktpz7HV-dkmIVoCXy3eeiKKqrgF0~PPDP9XJMc1w~lvO4LxuTRXeAZlWzB118N7yyU6vxmYJ1mJfIjDu18iHLcxQst7IdPKVxJhbTaefYf5P0Rv1VfVXZhbvjcgdlOb2XBPJ~sIx651wC3tMn3aZhFc0ULiwzg6PSmgg63ZkxP3ckaPd~a91FOcUJiy84IZuCcOlsdl-K4cp-0Yix3rWDwqb6bLOmhjf5GdhkG79A0OIoEn0B6GELW0lmD8CtXp1SCib~M2tkUYp6VD5aJW2712ohO2GoHNpIRlrMAWdaVsQ8dnUFA__&Key-Pair-Id=KUT5TJCACFTXG","Governor Jared Polis and state budget officials told the Joint Budget Committee on Aug. 28 that they will implement about $252 million in midyear reductions and transfers to close a revenue shortfall created largely by federal legislation known in the meeting as “HR 1.” Polis said the actions are expected to leave a modest surplus of $10 million to $15 million and keep the state reserve above 13 percent of General Fund appropriations.

The measures combine executive orders, statutory changes passed during the special session and cash‑fund transfers. The governor said the legislature’s recent fiscal changes, including closing corporate tax loopholes, reduced the scale of cuts needed and protected K‑12 funding and public safety.

Polis said the revenue loss from HR 1 and concurrent rolling federal conformity reduced state receipts by roughly $1.2 billion and created an eight‑to‑nine hundred million dollar budget hole for the current fiscal year. “For months, of course, we’ve been communicating with Coloradans and our members of Congress about the disaster that was HR 1,” Polis said. He added that the early action spreads the necessary reductions across more months of the fiscal year and avoids deeper, shorter‑term cuts.

Why it matters: Colorado is constitutionally required to balance its budget. The executive and legislative actions presented to the Joint Budget Committee (JBC) allocate reductions, limited use of the rainy‑day reserve, and cash‑fund sweeps to avoid cutting K‑12 education and public safety while still addressing the shortfall created this year.

Key elements in the package, as presented by Mark Ferndino, budget director for the governor, include:
- A planned sweep of about $105 million from Proposition 123 (the OEDIT portion) to the General Fund, subject to regular‑session implementing language. Ferndino said the ballot language allows use of these funds “if we are below the TABOR cap.”
- Transfers and cash‑fund impacts totaling roughly $146.7 million, including $9.2 million from CollegeInvest administrative balances, $5 million from a CDLE disability trust balance, $3 million from a mobile‑home park water quality fund (leaving a reserve), and other smaller transfers. An ARPA custodial balance of $5.4 million in the governor’s office is also proposed for transfer after prior legislative allocations.
- A hiring freeze that took effect August 26 estimated to save about $3 million this fiscal year; the executive order carves out exceptions for health and public‑safety positions. Ferndino said agencies will report more precise savings when available.

Ferndino said the Department of Health Care Policy and Financing (HCPF) would see about $79.1 million in reductions (details on provider‑rate actions are in a separate package), and that higher education reductions total about $12.7 million while still leaving higher education with a net increase for the year.

Polis and Ferndino stressed they limited reserve use to about 2 percent of the rainy‑day fund and expect to retain a reserve in excess of 13 percent; Polis said the administration’s goal is to restore the reserve toward 15 percent over time. “The reserve is important to buoy the state in the times of recession or economic downturn,” Polis said, and he noted forecasts show roughly a 50 percent chance of recession over the next two years.

Timing and next steps: Ferndino told the committee most of the reductions start Sept. 1; provider‑rate changes at HCPF are estimated to start Oct. 1. He said departments will submit any emergency “13‑30” requests to the JBC in the coming weeks and that the JBC can revisit or replace reductions during the February budget process. Ferndino also said implementing language for the Prop 123 transfer will be proposed in the regular session.

Caveats and procedural notes: Ferndino said many cash‑fund actions affect funds that are spent in arrears (collected this year, spent next year) so current contracts that rely on last year’s revenues are not immediately affected. He also noted some transfers rely on forecasts and will be updated in the September forecast.

What was not finalized: The administration and the committee acknowledged many decisions remain subject to the September economic forecast, federal approvals (for some Medicaid changes), and regular‑session legislation to implement the Prop 123 sweep and other technical changes.

Ending: The JBC indicated it will receive more detailed line‑by‑line information and implementation schedules from departments, including explicit dates for when specific rate adjustments and program changes take effect. Ferndino said the administration will provide an itemized list of department reductions and expected implementation timelines to the JBC.
","Governor Jared Polis and state budget staff on Aug. 28 told Colorado’s Joint Budget Committee they will use executive orders, special‑session fiscal changes and cash‑fund transfers to produce about $252 million in midyear reductions and transfers to close a shortfall caused largely by federal tax changes.",{"_33":89,"_35":36,"_37":38,"_39":90,"_41":91,"_43":92,"_45":93,"_47":94,"_49":95,"_51":96,"_53":97,"_55":56,"_57":58,"_59":98,"_61":62,"_63":64,"_65":99,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6133728,"Higher‑education increase reduced; institutions told to expect smaller share of previously planned boost",1115,1451000,2566000,"/Search/View?dp=1&key=5698498-7cd7afe2aaa10994273d7d0a4c1586ef&start=1451&end=2566","https://assets.pipeline.soar.com/5698498-7cd7afe2aaa10994273d7d0a4c1586ef/thumbnail_1451000.jpg","/articles/6133728/Colorado/Highereducation-increase-reduced-institutions-told-to-expect-smaller-share-of-previously-planned-boost","https://secure.pipeline.soar.com/6133728-6635fe7268af579197ba962b27ad6360/orig.mp4?Expires=1770432786&Signature=ZU9yqNHT8TMIHNYyZCkNO8UQSxDILcWpf-mh5qVX1LO76yvaF2jRiCwBWS7iOOn-CRSDqMoFNn4ZYh0wdt6ZezH2K~QxI2sKT6Xqw7Yw2XeWKQ3B2E435jcdK69ExjfxjlwV77eQ-XFBi-v6IJGfrQab47pupptd7KlP7CLQvclI0XYgScaY6K~X3N1w8hH2qAtXXdkfryZVFF6qSUks3a0nGhFcv4mwtlluMkX81uUZ3Nex49hwU4k34tqvMMxB-mWxKVQOp5-d0rdtsmT9QWHNge4wIv0kfk4bY0jQGo5du3sbcL42cjs38mdktpRVpOtCS~89Bs3lvq~CYygwWQ__&Key-Pair-Id=KUT5TJCACFTXG","State budget staff told the Joint Budget Committee on Aug. 28 that higher education will absorb a $12.7 million reduction from a previously planned increase but will still receive a net increase of roughly $22.1 million versus the prior year.

Mark Ferndino, the governor’s budget director, said the reduction represents approximately one‑third of the increase that institutions had been expecting. He said departments met with campus presidents and chief financial officers the morning of the presentation and that the administration used the formula to allocate reductions rather than selecting individual institutions for deeper cuts.

Why it matters: Many institutions set tuition and finalized budgets over the summer. Lawmakers on the JBC expressed concern that midyear reductions will be difficult for campuses to absorb because the academic year and most institutional budgets already were in place. Vice‑chair members asked how universities would navigate smaller‑than‑expected state increases now that semester budgets are set.

What officials said and next steps: Ferndino said institutions had a planned increase last year that partly funded controlled‑maintenance and other projects. The administration told the committee it will unpause some controlled maintenance projects through the state architect process. Ferndino also said the administration would provide a more detailed line‑by‑line schedule “closer to the March timeline” showing which departments and programs carry reductions so the JBC can include them in supplemental or next‑year budget packages.

Legislators’ concerns: Committee members noted the timing—classes and tuition decisions were made—and asked the administration to work with institutions and governing boards about how to implement reductions without disrupting enrolled students. Ferndino said the administration had spoken with presidents and CFOs earlier that day and would continue engagement; statute that the staff reviewed requires communication with governing boards before the cuts go into effect.

Ending: Officials said more detailed materials will be provided to the JBC and that the committee can revisit higher‑education funding choices in the regular session and February budget process.","State budget officials told the Joint Budget Committee on Aug. 28 that higher education will face a $12.7 million reduction from a planned increase but will still receive a net increase of about $22.1 million compared with the prior year.","actionData","errors"]

Article not found

JBC package rolls back parts of provider increases, reinstates prior authorization and tightens reviews for certain Medicaid services

Polis and Budget Office outline $252 million in midyear cuts, tap reserves and cash funds to balance Colorado budget

Higher‑education increase reduced; institutions told to expect smaller share of previously planned boost