Senate Bill 25-294

NOTE: The governor signed this measure on 5/31/2025.

BY SENATOR(S) Amabile and Kirkmeyer, Bridges, Catlin, Cutter, Exum, Jodeh, Kipp, Michaelson Jenet, Wallace;

also REPRESENTATIVE(S) Bird and Taggart, Sirota, Bacon, Brown, English, Gonzalez R., Lieder, Lindsay.

Concerning residential behavioral health services for medicaid members who are in the custody of a county department of human or social services.

Be it enacted by the General Assembly of the State of Colorado:

SECTION 1.  In Colorado Revised Statutes, 25.5-5-402, amend (2)(a); and add (2)(c) as follows:

25.5-5-402.  Statewide managed care system - rules - definitions - repeal. (2)  The statewide managed care system implemented pursuant to this article 5 does not include:

(a)  The services delivered underpursuant to the residential child health-care program described in section 25.5-6-903; except in those counties in which there is a written agreement between the county department of human or social services, the designated and contracted MCE responsible for community behavioral health care, and the state department;

(c) (I)  The services delivered in a qualified residential treatment program, as defined in section 26-5.4-102, or in a psychiatric residential treatment facility, as defined in section 25.5-4-103, to members who are in the care and custody of a county department of human or social services.

(II)  This subsection (2)(c) is repealed, effective July 1, 2026.

SECTION 2.  In Colorado Revised Statutes, 25.5-5-202, add (5) as follows:

25.5-5-202.  Basic services for the categorically needy - optional services - repeal. (5) (a)  No later than December 1, 2025, the state department shall, in collaboration with the department of human services, the behavioral health administration, and relevant stakeholders, develop policies to transition qualified residential treatment programs, as defined in section 26-5.4-102, and psychiatric residential treatment facilities, as defined in section 25.5-4-103, to the statewide managed care system, part 4 of this article 5, for members who are in the care and custody of a county department of human or social services. The policies may include improving discharge planning, connection across systems, standard utilization management policies, and step-down service plans.

(b)  No later than July 1, 2026, the state department shall implement the policies developed pursuant to subsection (5)(a) of this section.

(c)  This subsection (5) is repealed, effective July 1, 2027.

SECTION 3.  Safety clause. The general assembly finds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, or safety or for appropriations for the support and maintenance of the departments of the state and state institutions.

Signed By: James Rashad Coleman, Sr., President of the Senate

Signed By: Julie McCluskie, Speaker of the House of Representatives

Signed By: Esther van Mourik, Secretary of the Senate

Signed By: Vanessa Reilly, Chief Clerk of the House of Representatives

Signed By: Jared S. Polis, Governor of the State of Colorado