2025 Updates

Medicaid Therapy Cuts!

May 15th: 

Colorado Legislative Session Wrap-Up: A Win for OT Practitioners

As the 2025 legislative session comes to a close in Colorado, we’re excited to share some positive news. Thanks to your engagement with our calls to action—and through strong collaboration with CSHA and APTA Colorado—occupational therapy practitioners, along with physical and speech therapy clinicians, have secured a 1.6% increase in Medicaid reimbursement.

While this increase may seem modest, it’s a meaningful win, especially considering that earlier projections suggested there might be no increase at all—or even a potential cut. In addition, the proposed implementation of the Multiple Procedure Payment Reduction (MPPR) was removed from consideration and will not be moving forward.

We sincerely thank you for your advocacy and continued support. Your efforts made a real difference for occupational therapy practitioners across the state!

Next On Our Radar: Colorado Faces Potential $1B Medicaid Cut

Colorado lawmakers are preparing for a special legislative session to address significant federal Medicaid funding cuts, which could total up to $1 billion. If these cuts are enacted, the state will struggle to replace the lost funds, potentially resulting in drastic reductions to Medicaid services and other critical state programs.

Medicaid is Colorado's largest state program, relying on over $10 billion in federal funding. A decrease in this funding could have severe consequences, especially for healthcare access and services for vulnerable populations across the state.

Governor Jared Polis’ budget director has indicated that Colorado will be unable to backfill these funds, putting essential programs at risk. As the legislative session progresses, lawmakers are bracing for the possibility of reconvening to address this funding crisis.

Stay tuned as OTAC continues to monitor the situation and its potential impact on occupational therapy services in Colorado.

 Read more: Colorado Sun Article

April 11th:  Thank you so much to everyone to advocated and sent emails to the House as well as the Senate!

The Joint Budget Committee has concluded and we are waiting on the finalized report. We will update you as soon as we have more information!

April 7th:  We’re in the final push regarding the Medicaid therapy cuts, and we need your help to take action by the end of day Tuesday, 4/8/25. See information below on how to contact your House Reps!

April 4th: 

Thank you to everyone who advocated to the Senate! Colorado Senators have successfully eliminated the 8.5% Medicaid therapy cut, but the fight isn't over! Now it’s up to the House of Representatives, where the 8.5% Medicaid therapy cut is still under review. We need your help to ensure this cut is reversed.

March 28th: The time to act is NOW!

This past week, the Joint Budget Committee (JBC) approved an 8.5% reduction in Medicaid payments for occupational, physical, and speech therapies under the Medicare Multiple Procedure Payment Reduction (MPPR). While we recognize the state’s financial challenges, this cut is unsustainable and will seriously impact client access to vital therapy services including occupational, physical and speech therapy.

Important: The MPPR is a voluntary program—not a federal mandate. States are not required to implement it. OTAC is actively working to reverse this decision, but we need your help to make a difference.

Learn more here!

Equine Therapy

April 1st:  

We’d like to provide an important update regarding recent developments within the Joint Budget Committee (JBC) that affect Medicaid reimbursement for equine therapy services.

Last week, a bill was drafted at the JBC that proposed excluding the use of horses as a therapy tool, essentially reverting to a pre-HB22-1068 situation where equine movement therapy would no longer be reimbursable by Medicaid. However, in an unexpected turn, the JBC decided not to move forward with this bill, despite it being recommended by staff. As a result, the provisions of HB22-1068, which allow for Medicaid reimbursement of equine therapy, remain in effect.

We initially misunderstood some of the details surrounding this bill, and we sincerely apologize for any confusion this may have caused. To ensure accurate information is shared, we’ve removed the previous Facebook post and are sending this clarification.

We are continuing to monitor the situation closely and will keep you informed of any further updates. Thank you for your continued support and for staying engaged as we work through these developments.

HB25-1016: Update!

Thank you for your tremendous support! Your letters and testimony played a vital role in the passage of OTAC’s groundbreaking bill on 3/17/25. This legislation updates the Colorado Occupational Therapy Practice Act by allowing OTs to prescribe durable medical equipment without a doctor’s order. We are proud to be the first state in the U.S. to enact such a law, and the bill is now headed to the governor’s office for final approval.

What This Means for You:

• Effective Date: The law will take effect in August 2025.
• Next Steps: At that time, we will provide educational resources in collaboration with PT State Legislation to help you navigate the changes.
• Important Note: Although your client’s insurance may still require a doctor’s order for coverage, this law is a significant step toward shifting current insurance guidelines.

Thank you again for your continued support!

Medicaid Reimbursement Rates - OTAC

The Occupational Therapy Association of Colorado is preparing for the 2025 legislative session, and we need your help! We would appreciate your participation in a brief survey on insurance and Medicaid reimbursement in Colorado. OTAC is using this data to help advocate for Medicaid reimbursement rate increases for you.

The survey should take about 10 minutes to complete. If you have any questions, please contact info@otacco.org.

Thank you very much for your time and participation!

Survey Link

Medicaid Provider Rate Review Public Meetings - Department of Health Care Policy and Financing 

Update March 21st: Important Update: Medicaid Outpatient Provider Rates

If you were unable to attend the meeting on Friday, 3/21, led by the Department of Health Care Policy & Financing (HCPF) regarding Medicaid outpatient provider rates, you can still submit your comments and feedback to: HCPF_RateReview@state.co.us. These meetings, hosted by HCPF, will continue throughout the year, but last Friday’s discussion focused on outpatient PT, ST, and OT rates. We will keep you informed about future opportunities to provide feedback and advocate against potential provider rate cuts. 

As Colorado’s legislature and Joint Budget Committee work to address a $1.2 billion deficit this year, Medicaid services could face significant changes. Your voice is more important than ever, especially if you work in an outpatient setting and serve clients with Medicaid. Please make your voice heard!

Medicaid Provider Rate Review Advisory Committee (MPRRAC)

Each year the Medicaid Provider Rate Review Advisory Committee (MPRRAC) focuses on a particular scope based on services under review for that year. Services are reviewed on a three-year basis, but are subject to change. Occupational therapy, speech therapy and physical therapy are up for review this year. 

Dates for 2025 are below:

Friday, July 18th, 2025 - Quarter 2A

Friday, July 25th, 2025 - Quarter 2B

Friday, August 22nd, 2025- Quarter 3

Friday, November 14th, 2025- Quarter 4

HCPF website with zoom link & more information on these meetings!

Colorado Early Intervention: Proposed Cuts

April 18th:

Colorado Department of Early Childhood (CDEC) has gathered the following strategies from providers, families, and partners. Input is currently being collected on their potential impact and results will be presented to the Joint Budget Committee as part of the RFI process. CDEC will hold weekly Input Sessions to discuss each strategy in detail. You are encouraged to share your feedback related to each strategy through this survey and participate in the discussions during the Input Sessions. Each topic is listed by the date discussed, you may add feedback regardless of whether you were able to attend the session or not. Provide feedback here!

April 7th: 

Call to action: This Wednesday, April 9, 2025, at 1pm, the Early Intervention Colorado team will be collecting feedback on the cost-containment strategies of eliminating EI provider training stipends for new providers and eliminating mileage reimbursement for all EI providers. If you are a rural provider, new graduate exploring the job market, or a provider considering a career switch to EI, this discussion may especially impact you!

Please attend the EI Provider listening session so that your voice is heard. Meeting link!

March 28th:

Call to action request!

Please watch this call to action video from Lisa Fyffe here!

Lisa is an OTAC member who is an occupational therapy practitioner. She is actively involved in Early Intervention and our Legislative Committee. Thank you Lisa for your ongoing support and passion in advocating for our profession in EI!

• The EI Provider group has created a document to share their ideas. This document will be directly shared with CDEC leadership. There is a tab for OTPs to share their opinions.
• The EI Provider meetings will offer an overview of the meeting agendas through June 15th. CDEC will share specific strategies with attendees as to which previously proposed cost-containment measures are off the table and which measures are being explored. OTPs need to show up to! The calendar and Google meet link can be found here.

March 21tst: 

Great news for Colorado Early Intervention (EI) services! The Joint Budget Committee (JBC) recently approved an additional $2 million in funding to maintain current EI services through the remainder of the 2024-2025 fiscal year. The Colorado Department of Early Childhood (CDEC) has also stepped in with an additional $1.5 million to cover the shortfall. This is a significant win for EI advocates, with many JBC members personally invested in the success of these services. However, the victory is temporary. The JBC met on March 17, 2025, and discussed funding for FY 2025-2026. While there is funding allocated for EI in FY 2025-2026, the JBC was clear that they want to see "sustainability solutions" to reduce the cost of the EI program while still maintaining the quality of the services. CDEC is hosting provider meetings to gather input on proposed cost containment measures, offering a valuable opportunity for providers to influence decisions. For those interested, the JBC has begun discussions on potential changes for EI in the 2025-2026 budget, and providers are encouraged to participate in upcoming working sessions hosted by CDEC. Stay informed and engaged by checking the full meeting calendar here: CDEC Calendar. Follow the actions of the JBC here.

We are gathering information and working with our lobbyists on how we can support this issue. Are you interested in joining a task force? Have information? Please email info@otacco.org

CO Rehab Tri-Alliance Town Hall
First town hall with OTAC, APTA and CSHA!

Our organizations want you to be well-informed about our efforts in the Colorado General Assembly and our commitment to working together for the benefit of our professionals and all Coloradans.

The state is facing a $1B budget shortfall and lawmakers will have difficult decisions to balance the budget. Every cut option is on the table including Medicaid rates. Your association is also working on reducing administrative barriers and expanding your scope of practice to better serve your patients with DME, school sports physicals, creating a SLPA credential, and workers’ compensation.

Watch the recording!