HB26-1377: Clarifying Fund Transfers for Managed Care Entities Under TABOR
Summary
Colorado House Bill 26-1377 proposes to clarify the treatment of funds transferred from the Department of Health Care Policy and Financing through managed care entities to the Department of Human Services for mental health transitional living homes. Currently, the Office of the State Controller counts these pass-through payments as state fiscal year spending under TABOR. The bill would exclude such funds received by CDHS from inclusion in TABOR spending calculations.
What changed
HB26-1377 would modify how the Office of the State Controller treats fund transfers involving managed care entities under TABOR. Under current practice, payments from HCPF to MCEs are counted as money leaving the state, and subsequent payments from MCEs to CDHS are counted as state fiscal year spending. The bill establishes that funds received by CDHS from MCEs (originating from HCPF federal or state money) would not be included in TABOR state fiscal year spending calculations.
For affected parties including managed care entities, the Department of Human Services, and the Department of Health Care Policy and Financing, this bill would remove an accounting complexity in how pass-through healthcare funding is classified. Transitional living homes serving Medicaid-eligible patients may benefit from clearer funding mechanisms. State budget analysts and managed care entities should track this legislation as it could affect fiscal year spending projections and Medicaid funding administration.
What to do next
- Monitor bill progress through House Appropriations Committee
- Review current accounting treatment of MCE pass-through payments for TABOR compliance
- Contact Colorado legislative representatives to provide feedback on the bill
Archived snapshot
Apr 13, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
HB26-1377
Managed Care Entity Payments
| Type | Bill |
|---|---|
| Session | 2026 Regular Session |
| Subjects | Health Care & Health Insurance State Revenue & Budget |
Concerning a clarification regarding the treatment of funds that are transferred from the department of health care policy and financing through to the Colorado department of human services that pass through a regional accountability entity.
Recent Bill (PDF) Recent Fiscal Note (PDF) Bill Summary:
Joint Budget Committee. The department of human services (CDHS) operates mental health transitional living homes (transitional homes). Part of the funding for transitional homes comes from patient revenues, including Medicaid-eligible patient revenues. For Medicaid-eligible patients, the patient revenues originate in the department of health care policy and financing (HCPF), HCPF distributes this money to managed care entities (MCEs), and the MCEs then pay CDHS for the services provided at the transitional homes. At least in part, the MCEs serve as passthroughs transferring patient revenues from HCPF to CDHS for transitional homes.
Because MCEs are nonstate entities, the office of the state controller counts the payments from HCPF to MCEs for transitional homes as money leaving the state and then counts the payments from MCEs to CDHS for transitional homes as state fiscal year spending for purposes of section 20 of article X of the state constitution (TABOR).
The bill establishes that, if an MCE receives federal funds or state money from HCPF and pays those funds or that money to CDHS, the funds or money received by CDHS is not included in the calculation of state fiscal year spending for purposes of TABOR.
(Note: This summary applies to this bill as introduced.)
Prime Sponsors
Emily Sirota
Representative
Rick Taggart
Senator
Judy Amabile
Senator
Barbara Kirkmeyer
Committees
House
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Status
Under Consideration
Introduced
Under Consideration
Related Documents & Information
| Date | Version | Documents |
|---|---|---|
| 04/11/2026 | Reengrossed | |
| 04/09/2026 | Engrossed | |
| 04/02/2026 | Introduced |
| Date | Version | Documents |
|---|---|---|
| 04/02/2026 | Initial Fiscal Note |
| Activity | Vote | Documents |
|---|---|---|
| Refer House Bill 26-1377 to the Committee of the Whole. | The motion passed on a vote of 9-2. | Vote summary |
| Hearing Summary | Committee Report: PDF | |
| Date | Calendar | Motion |
| --- | --- | --- |
| 04/11/2026 | Third Reading | BILL |
| Date | Location | Action |
|---|---|---|
| 04/11/2026 | House | House Third Reading Passed - No Amendments |
| 04/10/2026 | House | House Third Reading Laid Over Daily - No Amendments |
| 04/09/2026 | House | House Second Reading Special Order - Passed - No Amendments |
| 04/08/2026 | House | House Second Reading Special Order - Laid Over Daily - No Amendments |
| 04/06/2026 | House | House Committee on Appropriations Refer Unamended to House Committee of the Whole |
| 04/02/2026 | House | Introduced In House - Assigned to Appropriations |
Prime Sponsor
Rep. E. Sirota | Rep. R. Taggart
Sen. J. Amabile | Sen. B. Kirkmeyer
Sponsor
Co-Sponsor
(None)
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