Proposed Medicaid Payment Delays

Molly PereiraFeatured News

November 9, 2010

The Colorado Department of Health Care Policy and Financing is expected to implement another delay in the payment of Medicaid claims in the spring 2011.  To help address a substantial budget shortfall in the current fiscal year (2010-2011), Medicaid has proposed delaying the payment of claims for one week in April 2011, one week in May 2011 and one week in June 2011, resulting in a cumulative three-week delay of payments by the end of the current fiscal year. 

This three-week payment delay would be continued through the following fiscal year (2011-2012).  The department is proposing a payment delay in lieu of cutting provider reimbursement rates, cutting benefits or cutting eligibility (which would result in major federal penalties).

Medicaid providers are encouraged to consider how this cash flow adjustment may impact their practices and make any necessary arrangements to accommodate the change. In the past, some private foundations have offered loans to help bridge any cash flow issues created by the payment delay.  We are hopeful that these services will be offered again and we will share additional details on these services as they become available.

For more information or if you have questions, please call Joanne Lindsay at 303-866-3144 or e-mail