HC-15-1-Hospital Provider Fee Reclassification as an Enterprise Fund, Support For

WHEREAS HB09-1293, known as the “Health Care Affordability Act of 2009,” was passed by the Colorado General Assembly authorizing the Department of Health Care Policy and Financing to charge and collect a hospital provider fee, and

WHEREAS the General Assembly determined that “Hospital providers within the state incur significant costs by providing uncompensated emergency department care and other uncompensated medical services to low-income and uninsured populations”, and

WHEREAS commencing July 1, 2009, the State Department began collecting hospital provider fees, “for the purpose of obtaining federal financial participation under the state medical assistance program” to be set aside in the Hospital Provider Fee Cash Fund, and

WHEREAS the hospital provider fee was established for the sole purpose of leveraging matching funds provided by the federal government, used to cover otherwise uninsured patients, without impact to Colorado’s general fund, thus not conflicting with CLUB 20’s support for TABOR, and

WHEREAS the hospital provider fee was established to directly offset and supplement general fund appropriations to support hospital reimbursements, and

WHEREAS the creation of the hospital provider fee did not take into consideration the increased revenues in the State budget and impacts to TABOR in calculating TABOR reimbursements. These fees totaled $534 million in 2014 to 2015 and are expected to be $688 million in 2015 to 2016, and

WHEREAS TABOR refunds, as a result of the hospital provider fee, have significant impacts on General Funds available for the severance tax fund, K-12 and higher education, transportation funding, and other State services.

NOW, THEREFORE, BE IT RESOLVED that CLUB 20 supports a legislative action that would reclassify the hospital provider fee as an “Enterprise Fund” that would allow the funds from the Hospital Provider Fee to be exempt from the TABOR calculation for the purposes of Colorado State budgeting, and

BE IT FURTHER RESOLVED that CLUB 20 strongly supports the restoration of full transportation funding from the state’s general fund, upon the conversion of the hospital provider fee,  as provided for by the legislature, as well as the restoration of $300 million to the Colorado severance tax funds that have been taken since 2009 for balancing the budget, and

BE IT FURTHER RESOLVED that CLUB 20 restates its opposition to using severance tax revenues as a funding source for balancing the state budget, in bad times as well as good times,


Adopted 9/11/2015


Resolution in PDF Format