Head of Colorado’s Medicaid program resigns as state Senate was preparing to take “no confidence” vote ...Middle East

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The head of the Colorado agency overseeing the state’s Medicaid program abruptly announced her resignation Monday as the state Senate was preparing to debate a resolution of no confidence in her. 

A draft of the resolution criticizing Kim Bimestefer, who is one of the longest-serving officials in Gov. Jared Polis’ cabinet, was obtained by The Colorado Sun.

“We, the members of the Colorado Senate, find that Director Bimestefer no longer enjoys the confidence of the members of the Senate and urge Gov. Polis to remove Director Bimestefer as executive director of the Department of Health Care Policy and Financing and appoint a successor who can rebuild confidence in the department and its ability to complete its mission,” the resolution said. 

The resolution, being led by state Sen. Kyle Mullica, a Thornton Democrat who is chair of the Senate Health and Human Services Committee was never introduced. But the draft obtained by The Sun showed that at least 26 of the Senate’s 35 members had signed on in support, more than enough for the resolution to pass.

Mullica didn’t immediately return a message seeking comment on Monday. The Department of Health Care Policy and Financing referred questions to the governor’s office, which did not immediately respond to a request for comment. 

The Sun also asked HCPF and the governor’s office for comment from Bimestefer directly.

Polis announced Bimestefer’s departure in a news release on Monday. 

“Kim has been leading on health care in Colorado for decades and has committed her career to serving her fellow Coloradans,” Polis said in a statement. “I am incredibly grateful for her passion and commitment to making our state a better place for everyone, and for her unrelenting quest to really move the needle on health care costs and efficiency.”

It comes amid major cuts to the Medicaid budget as the state faces a $1.5 billion shortfall and as lawmakers have grilled Bimestefer’s department about past spending during intense budget hearings at the state Capitol. Lawmakers are on the brink of doubling the waitlist to 14 years for 24/7 services for adults with developmental disabilities, as well as cutting in-home care and spending on community outings for people with disabilities.

It also comes as the Medicaid program has faced embarrassment over high-profile misspending. Federal officials determined that the state health care department misspent $77.8 million in payments for Medicaid services for children with autism, and requested this month that Colorado return $42.6 million of that money. 

Medicaid officials recently revealed that they had overpaid contracted transportation providers for patients who use wheelchairs by several million dollars per year. It took five years to catch the mistake involving an incorrect billing code. 

The resolution specifically cited the wheelchair error, which was projected to cost the state more than $30 million in the current fiscal year before it was found.

Bimestefer, who is in her ninth year leading HCPF, said in a statement that it has been “a true blessing” to serve in the Polis administration.

“Across my career, this public service chapter has proven to be the most important and meaningful, and I am honored to have had this opportunity,” she said. “I have had the privilege of advancing systems that help Coloradans — often in the most difficult times in their lives — get the care and support they need to rise and thrive.”

State Medicaid officials, including Bimestefer, have countered that decisions made by lawmakers have driven a lot of the increased spending. One example is a program lawmakers created to provide health coverage to people who are otherwise ineligible for Medicaid because of their immigration status. The program’s costs are more than 600% higher than expected.

The Polis administration has seen remarkable stability in agency leadership during the governor’s two terms. Bimestefer’s departure is the first of what is expected to be many changes as Polis finishes his final year in the governor’s office.

The leaders of the Department of Public Health and Environment, the Department of Human Services, the Department of Transportation, the Department of Regulatory Agencies and Colorado Parks and Wildlife, among others, have all been in their roles since the beginning of Polis’ first term.

Bimestefer was first appointed the executive director of the Colorado Department of Health Care Policy and Financing in 2018, during the final year of Gov. John Hickenlooper’s term. She continued on as the head of the agency, known as HCPF, when Polis took office.

Under Bimestefer, a former insurance executive, HCPF has dramatically expanded its role. The agency manages Medicaid in Colorado as well as a companion program, the Child Health Plan Plus. Both serve Coloradans with low incomes or disabilities who would struggle to afford health care otherwise.

With Polis’ backing, Bimestefer has pushed the agency to take on a role as an all-purpose warrior against high health care costs. The agency has undertaken detailed analyses of hospital finances, sought to change how hospitals are paid and pushed to import prescription drugs from Canada, among other initiatives.

“In her tenure, Colorado has taken major steps to increase price transparency, reduce hospital and prescription drug costs, and hold the health care industry accountable,” Polis said in his statement. “Her legacy is one we hope to build on moving forward, and know that she will continue having an important impact on health care and serving her state in her next chapter.”

Such efforts often didn’t sit well with hospitals, especially larger hospital systems that often bore the brunt of the scrutiny. They also helped add significantly to HCPF’s administrative budget. A recent analysis by the nonpartisan staff of the legislature’s Joint Budget Committee found the agency’s administrative budget increased faster than the agency budget as a whole, though administrative expenses remained a very small percentage of the agency’s overall budget.

This is a developing story that will be updated.

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