Colorado Code § 29-28-101

Legislative declaration
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(1) The general assembly finds and declares that:
(a) Medicaid reimbursement rates cover only approximately sixty-five percent of the
actual costs incurred by service providers rendering services to medicaid recipients;
(b) Low medicaid reimbursement rates and increased caseloads have caused the costs to
shift within the health-care delivery system, resulting in higher medical costs for the general
population;
(c) The medicaid caseload continues to expand and, therefore, the need for providers to
serve these medicaid recipients continues to increase;
(d) Rising health-care costs are a primary concern for Colorado citizens and businesses;
(e) It is therefore in the best interest of the state of Colorado to authorize local
governments to impose a fee on certain medical providers to assist in financing medicaid costs
and the disproportionate share hospital payments for providing medical services to low-income
populations.

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