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Temporary Tax Incentive For Unreimbursed Medicaid Fees

Concerning a temporary tax incentive for the unreimbursed fees charged by health care providers for providing services to medicaid clients.
2016 Regular Session
Fiscal Policy & Taxes
Health Care & Health Insurance
Public Health
Bill Summary

Currently, health care providers that provide services to medicaid clients are often not reimbursed the full amount of the costs of such services. The bill creates an income tax credit to offset the financial impact of these unreimbursed costs. The tax credit is available for services provided in tax years 2016, 2017, and 2018.

The amount of the tax credit that can be claimed is 50% of either:
  • The difference in the cost of the services set forth in the medicaid and medicare fee schedules in effect at the time the services were rendered; or
  • For any services without a medicare fee schedule equivalent, the difference between the amounts paid for the services under the medicaid fee schedule in effect at the time the services were rendered and the fee amounts published in the most recent Colorado-specific cost-of-care or compensation survey conducted by an entity identified by rule of the executive director of the department of revenue (department).

If the amount of the credit allowed exceeds the amount of the income tax otherwise due, the bill prohibits the balance from either being refunded or carried forward and applied against the income tax due in any succeeding income tax years.

The department is required to include information regarding the tax credit in its 'State Measurement for Accountable, Responsive, and Transparent (SMART) Government Act' presentation in the legislative interim immediately prior to the repeal of the credit.

(Note: This summary applies to this bill as introduced.)




Bill Text


Sponsor Type Legislators
Prime Sponsor

Rep. C. Roupe



The effective date for bills enacted without a safety clause is August 7, 2024, if the General Assembly adjourns sine die on May 8, 2024, unless otherwise specified. Details