Legislative Updates

The Legislative Committee met this week to review active legislation, discuss expected budget impacts, and finalize planning for OTAC Hill Day. Key updates include passage of the dry needling bill, anticipated statewide budget reductions affecting therapy reimbursement, and ongoing advocacy opportunities for members.

Dry Needling Bill (HB26‑1042)

HB26‑1042 has officially passed and is headed to the Governor’s desk for signature. Thank you again to all those who wrote letters and advocated.

State Budget Deficit & Potential Rate Cuts

Colorado is facing a $1.5B+ deficit for FY 2026–27, which is projected to result in provider rates—OT included—being reduced to 85% of federal reimbursement rates (an estimated 30% cut). OTAC will continue to monitor the budget bill language closely to determine when and how advocacy engagement will be most effective.

Medicaid reimbursement for equine movement therapy specifically could be impacted. OT practitioners and impacted families should advocate directly by contacting the Joint Budget Committee- JBC.GA@coleg.gov.

Hill Day 2026- Registration is open (limited seats available)

Join us on Tuesday, April 7th for Hill Day - click here to learn more & register! 

Legislative Update: HB26-1042 - Dry Needling by Occupational Therapists

HB26-1042: Dry Needling by Occupational Therapists continues to move successfully through the Colorado legislative process.

Key milestones so far:

• Jan 14, 2026 – Bill introduced in the House and assigned to the House Health & Human Services Committee.
• Feb 4, 2026 – House Health & Human Services Committee approved the bill and referred it to the House Committee of the Whole.
• Feb 17, 2026 – House Second Reading passed with floor amendments.
• Feb 18, 2026 – House Third Reading passed, advancing the bill to the Senate.
• Feb 20, 2026 – Bill introduced in the Senate and assigned to the Senate Health & Human Services Committee.
• Mar 11, 2026 – Senate Health & Human Services Committee approved the bill and referred it to the Senate Committee of the Whole on the consent calendar. 

Placement on the consent calendar typically indicates the bill is considered non-controversial and expected to move forward without significant debate.

What This Means for Occupational Therapists

If ultimately enacted, the legislation would authorize occupational therapists in Colorado to perform dry needling beginning September 1, 2027, provided they meet specific requirements.

Occupational therapists would need to:

• Demonstrate appropriate knowledge, skills, and documented competency
• Complete an approved course of study that meets established educational and clinical training standards
• Obtain written informed consent from each patient explaining the risks and benefits of the procedure

The Colorado Department of Regulatory Agencies (DORA) would be responsible for developing the detailed training standards, competency requirements, and regulatory framework through the rulemaking process. 

OTAC will remain actively engaged throughout this process and will continue working with our lobbyists and legislative partners to help ensure the regulations support safe, evidence-informed, and accessible occupational therapy practice.

Stay Informed

To receive updates as the bill progresses and moves into rulemaking, please subscribe to the OTAC e-newsletter.

OTAC also plans to host a town hall meeting this summer or fall to discuss the legislation and what it means for occupational therapy practice in Colorado. Details will be shared through the OTAC e-newsletter once a date is confirmed.

If you are interested in joining the Legislative Committee and are an active OTAC member, please email info@otac.org to join! 

Thank You for Your Advocacy

We want to sincerely thank everyone who has contributed to advocacy efforts over the years. Progress like this happens because of the sustained engagement and leadership of Colorado occupational therapy practitioners.

If you're pleased with this outcome and would like to support OTAC’s continued advocacy work, please consider:

• Become an OTAC member
• Donate to support the legislative campaign

Your involvement helps ensure occupational therapy continues to grow and serve patients across Colorado.