Press Release- Jun 01, 2007
2OFFICE OF GOV. BILL RITTER, JR.
FOR IMMEDIATE RELEASE:
FRIDAY, JUNE 1, 2007
Contact:
Evan Dreyer, 720.350.8370
GOV. RITTER'S VETO MESSAGE ON HOUSE BILL 1216
June 1, 2007
The Honorable Colorado House of Representatives
66th General Assembly
First Regular Session
State Capitol
Denver, CO 80203
Ladies and Gentlemen:
I am filing with the Secretary of State House Bill 07-1216, "Concerning Methods of Enhancing Funding for Certain Medicaid Providers." I vetoed this bill as of ________ __.m. today and this letter sets forth my reasons for doing so.
House Bill 07-1216 has three components. First, it requires the Department of Health Care Policy and Financing (the "Department") to provide to any hospital that requests the information the number of Medicaid-eligible days for any prior year. Such information facilitates eligible hospitals' receipt of federal disproportionate share payments. In addition, the bill allows the Department to designate the University of Colorado Hospital and the Medical Center of Aurora as "medical assistance sites," that is, non-county social services sites that may accept medical assistance applications, determine medical assistance eligibility, and determine presumptive eligibility. (Denver Health is already a medical assistance site.) Finally, the bill requires the Department to reimburse all medical assistance sites and "outstationing" sites (non-county sites that accept applications but do not determine eligibility) for the cost of processing medical assistance applications "at a rate not less than the average cost for a state employee to process an application." The reimbursement obligation begins in FY 08/09.
I understand the need for the Department to provide information to hospitals about the number of Medicaid-eligible days. Indeed, the Department and I both understand that such information is necessary and will augment the ability of Colorado's hospitals serving the Medicaid population to draw down additional federal funds. Notwithstanding this veto, the Department will provide hospitals with the data. In fact, it has already launched an effort to do so. The Department expects to be able to provide the information within the next two to five months.
However, I cannot endorse the provision of House Bill 07-1216 that would mandate that the state reimburse medical assistance sites. A hospital's decision to operate as a medical assistance site is voluntary. Reimbursing medical assistance sites would benefit the hospitals but would not improve health care or access to health care for Colorado residents.
Medicaid eligibility determinations are primarily the responsibility of counties, which act as arms of the state for determining eligibility for Medicaid and other public benefits. Counties themselves would argue that they are far from fully reimbursed for their costs in doing so.
Our health care system is unquestionably broken. I understand hospitals' need to maximize payment for otherwise uncompensated services. However, requiring the state to pay the costs of a voluntary decision to serve as a medical assistance site is not a comprehensive solution or even a significant contribution to a comprehensive solution. This bill is not a reliable approach to improving the current situation or to serving more Coloradans.
We must seek solutions that make Medicaid more efficient and effective, not unnecessarily obligate limited state dollars for functions that do not directly improve health care or access to health care for Colorado residents.
Accordingly, I have vetoed House Bill 07-1216.
Sincerely,
Bill Ritter, Jr.
Governor