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July 2009
Colorado Department of Health Care Policy & Financing Provider Bulletin
On July 1, 2009, the Colorado Department of Health Care Policy and Financing (HCPF) implemented a Medicaid provider rate cut that is expected to save $30 million. HCPF sought to develop alternatives to across the board provider rate cuts, HCPF reached out to providers, stakeholders, an advocates for recommendations to avoid rate reductions by finding ways to reduce avoidable utilization. Based on the feedback, a series of targeted initiatives to encourage reduction of avoidable utilization have been implemented. About one-third of the total reduction will be achieved through these targeted initiatives. The remaining reduction will be achieved by reducing provider rates by two percent.
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