House Approves Bill Aimed At Overhauling Colorado's Medicaid System

DENVER (CBS4) - The House gave initial approval to a bill aimed at overhauling Colorado's Medicaid payment system.

Medicaid spending increased more than 70 percent in Colorado over the last six years. The current payment system is fee-for-service, which means doctors are compensated based on how many tests they order or how many office visits they get.

Democratic Rep. Don Young sponsored a bill aimed at rewarding doctors based on their patients' income. Under the bill Medicaid payers and the state health department will create pilot programs to restructure the payment system.

"We don't want to force a particular model across state. I think some areas come up with a payment model that reforms what goes on in their area but doesn't necessarily have to work across the state," Young said.

There are currently more than 600,000 people on Medicaid in Colorado. The bill has bipartisan support.