How to Understand Recent Changes to Colorado’s Mental Health Laws

Mental health is an essential aspect of overall health and wellbeing, and it is vital that individuals with mental health issues receive the care they need. In Colorado, the laws and regulations surrounding the provision of care for individuals with mental health issues have recently undergone significant changes. Many people and businesses have expressed confusion about whether mental health care falls under Colorado’s assisted living laws and regulations or behavioral health laws and regulations. The regulations associated with the recent mental health laws are currently in development, but for now we provide an overview to the recent changes to Colorado’s mental health laws.

Behavioral Health Administration Licensing Structure Updates

The Behavioral Health Administration (BHA) is the state agency responsible for regulating and licensing behavioral health services in Colorado. In recent years, the BHA has undergone significant changes to its licensing structure to better support the needs of providers and individuals seeking mental health care. These changes are in alignment with two Colorado state laws: HB 19-1237 and HB 22-1278.

HB 19-1237 established the Behavioral Health Entity (BHE) license and transferred authority over the BHE license from the Colorado Department of Public Health and Environment (CDPHE) to the BHA. The BHE license applies to all providers of behavioral health services, including mental health, substance use, and co-occurring disorder treatment services. The BHE license is a base license that providers must obtain, and it allows providers to offer various types of services at multiple locations. The BHE licensing model provides a “cafeteria-style” license, meaning that providers can tailor their license to the specific services they provide. This increased flexibility allows for easier addition of services and locations to better serve the populations in need of mental health care.

HB 22-1278 requires the BHA to establish rules supporting the development of the agency. These rules support the development of the BHA as it takes on the authority of the BHE license and continues to license and regulate behavioral health services across the state.

Benefits of the New Licensing Structure.

The restructuring of the BHA’s licensing structure provides several benefits for providers and individuals seeking mental health care. The BHE requirement streamlines the licensing process, requiring all providers of behavioral health services to obtain the same base BHE license. This allows for a standard of high-quality services across Colorado's licensed provider network.

For individuals seeking services, the changes to the licensing structure may be an improvement for obtaining behavioral support. The streamlined licensing process ensures that providers offer high-quality care that meets the needs of individuals seeking mental health services. The licensing structure increases flexibility for providers, enabling them to tailor their license to the specific services they provide. The state BHA informs us that this new adaptability, allows providers to better serve the populations in need of mental health care and ensure that individuals receive the care they require.

Colorado’s Medicaid Coverage for Behavioral Health Services

Medicaid covers a range of licensed behavioral health services in Colorado. These services include outpatient therapy, inpatient psychiatric hospitalization, intensive outpatient programs, substance abuse treatment, medication-assisted treatment, and peer support services. Individuals seeking mental health services in Colorado may be eligible for Medicaid coverage, which can provide them with access to high-quality mental health care.

Memory Care and Mental Health Regulations

Memory care is a type of specialized care that is designed to meet the needs of individuals with memory loss, including those with Alzheimer's disease or other forms of dementia. Memory care often falls under assisted living laws and regulations. However, memory care can also be considered a type of behavioral health care, as it involves specialized care for individuals with cognitive impairments.

The new licensing structure and regulations may have significant implications for mental health and behavioral health providers in Colorado. The BHE license requirement will potentially streamline the licensing process by requiring all providers of behavioral health services to obtain the same base license as a provider of whole-person care.

This means that mental health providers who were previously licensed under different regulations may now be required to obtain a BHE license.  Mental health providers operating with substance abuse treatment will also be required to obtain a BHE license in place of their current SUD license starting July 1, 2023.

The new licensing structure allows providers to tailor their license to the services they provide, which ultimately increases flexibility and allows for easier addition of services and locations to meet the needs of the populations they serve. This means that providers can offer care for individuals with mental health issues and substance abuse disorders, as well as co-occurring disorders, hopefully, without confusion over which regulations apply.

Colorado's recent changes to mental health laws aim to streamline the provision of mental health care and ensure that individuals receive the care they need. The new licensing structure, including the Behavioral Health Entity license, offers increased flexibility for providers to tailor their services and expand their reach. These changes, coupled with Medicaid coverage for a range of behavioral health services, create a more accessible and responsive mental health care system in Colorado. As we navigate these new regulations, it is essential to stay informed and adapt to the evolving landscape, so providers can continue to offer high-quality care and support for individuals with mental health issues and their families.

As mentioned above, the regulatory framework for the changes described here are currently in development. If you want to follow those changes, or get involved, click here.

The information herein is intended to be educational and an introduction to the subject matter presented. Despite any statutory or regulatory references cited in the article above, it is NOT specific legal advice to be relied upon for specific individual circumstances. Contact your own legal professional or reach out to our firm if you would like specific advice on this topic.

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