The Colorado secretary of state’s office, which oversees the state’s Medicaid program, abruptly announced her resignation Monday as the state Senate prepares to consider a no-confidence motion against her.
The Colorado Sun has obtained a resolution criticizing Kim Bimestefer, one of the longest-serving officials in Gov. Jared Polis’ cabinet.
“We, the Colorado Senate, recognize that Secretary Bimestefer no longer enjoys the confidence of the Senate and call on Governor Polis to remove Secretary Bimestefer as Executive Director of the Office of Health Policy and Finance and appoint a successor who can rebuild confidence in the agency and its ability to carry out its mission,” the resolution states.
The resolution was sponsored by state Sen. Kyle Mullica, D-Thornton, who chairs the Senate Health and Human Services Committee, but was never introduced. However, at least 26 of the 35 senators signed in favor of the resolution, according to a draft obtained by The Sun, more than enough to pass the resolution.
Mulica did not return messages seeking comment Monday. The Department of Health Policy and Finance referred questions to the governor’s office, which did not respond to requests for comment.
The Sun also reached out to HCPF and the governor’s office for comment directly from Bimestefer. Neither responded.
Polis announced Bimestefer’s departure in a news release on Monday.
“Kim has led Colorado’s health care for decades and dedicated her career to serving her fellow Coloradans,” Polis said in a statement. “I am extremely grateful for her passion and dedication to making our state a better place for everyone, and her relentless quest to truly transform health care costs and efficiency.”
The plan comes amid deep cuts to the Medicaid budget as the state faces a $1.5 billion shortfall and lawmakers grill Mr. Bimestefer’s department over past spending during intensive budget hearings at the State Capitol. Lawmakers are on the brink of doubling the waiting list for 24/7 services for adults with developmental disabilities to 14 years, while cutting spending on home care and community outings for people with disabilities.
It also comes as the Medicaid program faces embarrassment over large-scale spending irregularities. Federal authorities determined that the state health department incorrectly spent $77.8 million in payments for Medicaid services for children with autism, and this month demanded that Colorado repay $42.6 million of that amount.
Medicaid officials recently revealed that they were overpaying contracted transportation companies for patients who use wheelchairs by millions of dollars a year. It took five years to discover the mistake involving incorrect billing codes.
The resolution specifically mentions a wheelchair mistake that, until it was discovered, was expected to cost the state more than $30 million this fiscal year.
Bimestefer, who is in his ninth year leading HCPF, said in a statement that serving in the Polis administration was a “true blessing.”
“Throughout my career, this branch of public service has proven to be one of the most important and meaningful, and I am honored to have this opportunity,” she said. “I have had the privilege of advancing a system that helps Coloradans during the most difficult times in their lives get the care and support they need to get back up and thrive.”
State Medicaid officials, including Mr. Bimestefer, countered that much of the spending increase was the result of decisions made by lawmakers. One example is a program that lawmakers created to provide health insurance to people who are ineligible for Medicaid because of their immigration status. The cost of this program is more than 600% higher than expected.
The Polis administration has shown remarkable stability in agency leadership during his two terms as governor, and as Polis concludes his final year as governor.
The leaders of the Department of Public Health and Environment, the Department of Human Services, the Department of Transport, and the Regulatory Authority have all served in their roles since the beginning of Polis’ first term.
Bimestefer was first appointed as executive director of Colorado’s Office of Health Policy and Finance in 2018, the final year of Governor John Hickenlooper’s term. After Polis took over, she remained in charge of the agency known as HCPF.
Under Mr. Bimestefer, a former insurance executive, HCPF has expanded its role dramatically. This agency administers Colorado’s Medicaid and related program, Child Health Plan Plus. Both serve Coloradans with low incomes or disabilities who would otherwise have difficulty paying for medical care.
Mr. Bimestefer, with support from Mr. Polis, pushed for the agency to assume the role of an all-around warrior against high health care costs. The agency has undertaken a detailed analysis of hospital finances, explored changes to how hospitals are paid and has taken steps such as promoting the importation of prescription drugs from Canada.
“During my tenure, Colorado has taken significant steps to increase price transparency, reduce hospital and prescription drug costs, and hold the health care industry accountable,” Polis said in a statement. “Her legacy is one we hope to continue to build on, and we know she will continue to have a significant impact in her next chapter as she continues to serve health care and our state.”
Such efforts were often not well-received by hospitals, especially large hospital systems that often faced the brunt of surveillance. They also helped significantly increase HCPF’s administrative budget. A recent analysis by the bipartisan staff of the Congressional Joint Budget Committees found that agency administrative budgets have grown faster than agency-wide budgets, even though agency administrative costs remain a very small portion of total agency budgets.
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