Colorado SB24-116 Discounted Care for Indigent Patients

In late May of 2024, Colorado Governor Jared Polis signed Colorado SB24-116, “Discounted Care for Indigent Patients” into law, which was designed to help address shortcomings in Colorado House Bill 21-1198, “Health-care Billing Requirements For Indigent Patients”. This combined legislation created Hospital Discounted Care (HDC), which patients who are at or below 250% of the Federal Poverty Guidelines (FPC) are eligible for.

Colorado SB24-116 addresses several areas ranging from Medicaid to Colorado residency. Some of the highlights include:

• Medicaid – Hospitals can serve as presumptive eligibility sites for patients who are eligible for Medicaid, but not enrolled. Hospitals can gain these patients temporary coverage since there is not an expedited pathway to gaining access or a requirement to apply.
• Physician Reporting – According to the statutory language of Colorado HB21-1198, only hospitals were mandated to report, despite there being a significant physician billing element. Colorado SB24-116 would remove hospitals from the middleman role.
• Inconsistent Billing Caps – Under Colorado HB21-1198, hospitals and providers can bill for services as a percent of gross monthly income for 36 payments. Facilities are allowed to bill up to 4% and physicians can bill up to 2%, but the statutory language does not effectively recognize when the hospital bills on behalf of an employed physician. Colorado SB24-116 allows bills up to 6% when a hospital bills on behalf of physicians.
• Scope of Hospital Services – The language of Colorado HB21-1198 applies to all services under the hospital’s license, which includes services outside the scope of HDC. The new legislation excludes primary care provided in a clinic that is located in a designated rural or frontier county and offers a sliding-fee scale for receiving discounted care.
• Colorado Residency – The previous bill included language that requires facilities to screen all patients despite non-Colorado residents not being eligible for HDC. Colorado SB24-116 clarifies that an individual must attest to residing in Colorado to be eligible for HDC.

Colorado SB24-116 addresses several parts of HB21-1198 to create hospital discounted care. Americollect works to keep you updated when changes like these happen. If you have questions about early out or bad debt collection services, please contact our Ridiculously Nice Sales team at the button below!