Committee approves notice‑escalation for provider contract changes; bill moves to Committee of the Whole

Sponsors Representative Marshall and Representative Bradley presented HB26‑12‑41 as legislation to ensure providers receive affirmative notice of material contract changes, especially fee schedule updates that can materially alter reimbursement. Marshall described a constituent physician’s experience where fee schedule changes left an independent practice owing hundreds of thousands and triggered prolonged arbitration.

Physician David Verbel testified he spent months and costly legal expenses tracing unilateral fee‑schedule changes and urged the committee to treat fee schedule updates as material contract changes that require affirmative consent. Kevin McFatric of the Colorado Association of Health Plans opposed the bill as introduced, arguing plans use electronic communications and proposed opt‑in/opt‑out alternatives to certified mail. Sponsors negotiated an amendment (L007) creating an escalation process: two separate electronic attempts with an affirmative response required; if there is no affirmative response, a third attempt by registered mail or personal service would be required before a material change takes effect. Sponsors said providers may ultimately bear certified‑mail costs if they fail to respond.

Committee action: Representative Bridal moved amendment L007 and it was adopted. The committee then moved HB12‑41 as amended to the Committee of the Whole with a favorable recommendation; roll call recorded passage 6–5 with two excused.

Why it matters: Proponents say the change protects independent and small provider practices from unilateral contractual changes that can threaten viability; insurers say the escalation approach is workable but that cost and operational burdens must be considered.

What’s next: HB12‑41 as amended advances to the Committee of the Whole for further consideration.

Sources: Sponsor statements and testimony from Dr. David Verbel and Kevin McFatric (Colorado Association of Health Plans).