Colorado § 8-46-202 - Major medical insurance fund - tax imposed - returns.

§ 8-46-202. Major medical insurance fund - tax imposed - returns.

(1) (a) There is hereby established a major medical insurance fund to defray medical, surgical, dental, hospital, nursing, and drug expenses and expenses for medical, hospital, and surgical supplies, crutches, apparatus, and vocational rehabilitation, which shall include tuition, fees, transportation, and weekly maintenance equivalent to that which the employee would receive under section 8-42-105 for the period of time that the employee is attending a vocational rehabilitation course, which expenses are in excess of those provided under the "Workers' Compensation Act of Colorado" for employees who have established their entitlement to disability benefits under said act, whether necessary to promote recovery, alleviate pain, or reduce disability.

(b) The unrestricted year-end balance of the major medical insurance fund, created pursuant to subsection (1)(a) of this section, for the 1991-92 fiscal year constitutes a reserve, except as described in subsection (1)(b.5) of this section, as defined in section 24-77-102 (12), and, for purposes of section 24-77-103:

(I) Any moneys credited to the major medical insurance fund in any subsequent fiscal year shall be included in state fiscal year spending, as defined in section 24-77-102 (17), C.R.S., for such fiscal year; and

(II) Any transfers or expenditures from the major medical insurance fund in any subsequent fiscal year shall not be included in state fiscal year spending, as defined in section 24-77-102 (17), C.R.S., for such fiscal year.

(b.5) (I) For state fiscal years commencing on or before July 1, 2024, and on or after July 1, 2026, the state treasurer shall credit all interest and income derived from the deposit and investment of money in the major medical insurance fund to the major medical insurance fund.

(II) Notwithstanding any subsection of this section to the contrary, for the state fiscal year commencing on July 1, 2025, in accordance with section 24-36-114 (1), the state treasurer shall credit all interest and income derived from the deposit and investment of money in the major medical insurance fund to the general fund.

(III) Repealed.

(c) Moneys in the major medical insurance fund are continuously appropriated to the division for the payment of benefits as provided in this section and legal fees.

(1.5) (a) Notwithstanding any provision of this section to the contrary, on May 1, 2003, the state treasurer shall deduct one hundred fifty million dollars from the major medical insurance fund and transfer such sum to the general fund.

(b) On July 1, 2003, the state controller shall transfer ten million dollars from the general fund to the major medical insurance fund.

(1.6) Notwithstanding any provision of this section to the contrary, on March 30, 2009, the state treasurer shall deduct sixty-nine million five hundred thousand dollars from the major medical insurance fund and transfer such sum to the general fund.

(1.7) Notwithstanding any provision of this section to the contrary, on March 31, 2010, the state treasurer shall deduct twenty-six million five hundred thousand dollars from the major medical insurance fund and transfer such sum to the general fund.

(1.8) Notwithstanding any provision of this section to the contrary, on June 30, 2011, the state treasurer shall deduct ten million dollars from the major medical insurance fund and transfer such sum to the general fund.

(1.9) Notwithstanding any provision of this section to the contrary, on June 30, 2025, the state treasurer shall transfer fifteen million dollars from the major medical insurance fund to the general fund.

(2) The director shall administer the major medical insurance fund and is hereby given jurisdiction to enforce the provisions of this article. The director shall administer and conduct all matters involving the major medical insurance fund in the name of the division, and, in that name and without any other name, title, or authority, the director may:

(a) (I) Sue and be sued in all the courts of this state, of any other state, or of the United States and in actions arising out of any act, deed, matter, or thing made, omitted, entered into, done, or suffered in connection with the major medical insurance fund and the administration or conduct of matters relating thereto, including the authority to employ counsel to represent the fund in any action.

(II) Nothing in this paragraph (a) shall be construed to waive any provisions of the "Colorado Governmental Immunity Act", article 10 of title 24, C.R.S., nor shall it be construed to waive immunity of the state of Colorado from suit in federal court, guaranteed by the eleventh amendment to the constitution of the United States.

(b) Make and enter into contracts or obligations relating to the major medical insurance fund as authorized or permitted under the provisions of articles 40 to 47 of this title, but neither the director nor any officer or employee of the division shall be personally liable in any private capacity for or on account of any act done or omitted or contract or other obligation entered into or undertaken in an official capacity in good faith and without intent to defraud in connection with the administration or conduct of the major medical insurance fund, its business, or other affairs relating thereto;

(c) Contract with physicians, surgeons, and hospitals for medical and surgical treatment, services and supplies, crutches and apparatus, and the care and nursing of injured persons entitled to benefits from said fund and, in addition, may contract for medical, surgical, hospital, and nursing services and supplies in excess of the amount and period otherwise limited in this article if said director determines that the contracting of such extra medical, surgical, hospital, and nursing services and supplies will reduce the period of disability for which said fund would be liable for the payment and compensation.

(3) to (5) Repealed.

Source: L. 90: Entire article R&RE, p. 545, § 1, effective July 1; (1) amended, p. 1844, § 32, effective July 1. L. 93: (1) amended, p. 1505, § 3, effective June 6; (3) to (5) repealed, p. 2143, § 6, effective July 1. L. 2003: (1.5) added, p. 455, § 4, effective March 5. L. 2007: (1)(c) added, p. 608, § 2, effective April 20. L. 2009: (1.6) added, (SB 09-208), ch. 149, p. 618, § 3, effective April 20; (1.7) added, (SB 09-279), ch. 367, p. 1925, § 1, effective June 1. L. 2011: (1.8) added, (SB 11-164), ch. 33, p. 92, § 1, effective March 18. L. 2025: (1.9) added, (SB 25-264), ch. 129, p. 499, § 5, effective April 25; IP(1)(b) amended and (1)(b.5) added, (SB 25-317), ch. 385, p. 2141, § 6, effective June 3.

Editor's note: (1) This section is similar to former § 8-66-102 as it existed prior to 1990.

(2) Subsection (1)(b.5)(III)(B) provided for the repeal of subsection (1)(b.5)(III), effective July 1, 2026. (See L. 2025, p. 2141.)

Cross references: For the legislative declaration in SB 25-317, see section 1 of chapter 385, Session Laws of Colorado 2025.

ANNOTATION

Annotator's note. Since § 8-46-202 is similar to § 8-66-102 as it existed prior to the 1990 repeal and reenactment of the "Workers' Compensation Act of Colorado", articles 40 to 47 of this title, relevant cases construing that provision have been included in the annotations to this section.

This act provides for the creation, administration, and funding of the Colorado major medical insurance fund, which provides benefits for qualified employees in addition to those available under the Workers' Compensation Act. Jefferson Sch. D. R-1 v. Div. of Labor, 791 P.2d 1217 (Colo. App. 1990).

Fund established by this section is not legal entity which can sue or be sued. McGrath v. Indus. Comm'n, 683 P.2d 810 (Colo. App. 1984).

Applied in In re Sterling v. Indus. Comm'n, 662 P.2d 1096 (Colo. App. 1982).