Presentation of FY 2016-17 Budget and Strategic Plan Update
COMMITTEE ON HEALTH CARE EXCHANGE
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09:35 AM -- Presentation of FY 2016-17 Budget and Strategic Plan Update
Mr. Patterson presented the Fiscal Year 2017 Draft Budget handout (Attachment B). He stated there is no new revenue assumed in the 2017 budget. He discussed the efforts to establish a Medicaid cost recovery model with the Department of Health Care Policy and Financing and the federal government. He discussed efforts to reduce wait times and manual technological work-arounds. He discussed establishing a capital reserve for future funding needs. Mr. Patterson reviewed the key fiscal year 2017 budget assumptions outlined on page 2 of the handout.
Brian Braun, Chief Financial Officer, Connect for Health Colorado; Marguerite Salazar, Commissioner of Insurance; and Mr. Patterson answered questions about the premium tax credit. Peg Brown, Chief Deputy Insurance Commissioner, responded to questions about premium tax credits and referenced Section 10-22-110, C.R.S. Adele Flores-Brennan, Connect for Health Colorado Board Chair, answered questions about the requirements for the exchange to be self-sustaining. Ms. Flores-Brennan and Ms. Brown discussed House Bill 13-1245, concerning funding mechanisms for the Colorado health benefit exchange.
Mr. Patterson continued discussion of the FY 2017 Budget, including the income from operations, cash balances, and forecasted quarterly financial positions. Mr. Patterson and Mr. Braun answered questions about how the exchange is addressing the losses in revenue outlined on page 3 of the handout. Mr. Patterson discussed the carrier fee revenue, special fee assessment revenue, and grant revenue. Mr. Patterson answered questions about how technology spending will be reduced and reductions in the marketing and outreach budget. In response to a question, Mr. Patterson stated that about 45 percent of the exchange's customers do not receive the advance premium tax credit. Mr. Patterson discussed the exchange's relationship with insurance brokers.
Mr. Patterson discussed the potential additional revenue and expense impacts outlined on page 10 of the handout. Mr. Patterson answered questions about the public benefit corporation option, which might be gap coverage or vision insurance. He answered questions about the Medicaid cost recovery model.
Mr. Patterson reviewed the 24 Month Projection on pages 11 through 13 of the handout. Mr. Braun answered questions about the carrier fees increase. Mr. Patterson reviewed the budget line components of customer services operations, technology, administration, marketing and outreach, and assistance network. Mr. Patterson answered questions about advance premium tax credits. Mr. Patterson discussed the relationship between Connect for Health Colorado, Centers for Medicare and Medicaid Services, and Department of Health Care Policy and Financing. He discussed the strategic plan formulation and the involvement of stakeholders in developing the strategic plan.
The committee recessed.