2026 Changes to Colorado Laws Impacting Medical Practices

Key Takeaways:

Several new Colorado healthcare laws enacted in 2025 take effect in 2026 and require immediate attention from medical practices. HB 24-1149 reforms prior authorization by extending approval durations, limiting mid-procedure denials, increasing insurer transparency and requiring electronic submission standards. HB 25-1002 mandates that behavioral and mental health utilization reviews align with nationally recognized, not-for-profit clinical criteria consistent with the federal Mental Health Parity and Addiction Equity Act. HB 1024 imposes new disclosure and informed-consent requirements when physicians delegate medical-aesthetic services to unlicensed practitioners. SB 25-152, effective June 1, 2026, requires all healthcare advertising that names a practitioner to clearly identify their Colorado license or credential. Together, these laws impact clinical workflows, documentation, patient disclosures and marketing practices, making proactive compliance reviews with qualified legal counsel essential for Colorado medical practices.

The laws governing medical practices are constantly evolving, and it’s important to stay current on the latest changes to these laws in order to avoid costly fines and compliance violations. Several Colorado laws impacting medical practices were enacted in 2025, but first take effect in 2026. The following overview will help you understand how these new laws will impact your medical practice. The best way to ensure you remain compliant with all the latest laws and regulations is to work with a small business attorney who specializes in working with medical practices.

Prior Authorization Reforms

Colorado House Bill 24-1149 went into effect on January 1, 2026. This law makes significant changes to the rules governing prior authorization for medical treatments. The new law is designed to make prior authorization faster, more transparent and less burdensome so that patients can receive the treatments they need in a timely manner.

Some of the changes to prior authorization associated with H.B. 24-1149 include:

• Approval Durations Are Extended – Prior authorizations for medical services will now be good for one year or the full course of treatment. Approvals for chronic medications are extended to last three years, with the exception of high-cost drugs (approvals for these last one year).
  
  
• Harmful Denials During Surgery Are Prevented – If it’s determined during an approved surgical procedure that an additional or related covered service is required, insurance companies can’t deny coverage for the additional treatment if a delay would pose health risks for the patient.
  
  
• Stricter Transparency Requirements – Health plans must clearly communicate all prior authorization requirements, clinical criteria and outcome data on their websites.
  
  
• Exemptions for Trusted Providers – Insurance companies must establish alternative programs that reduce or eliminate prior authorization for doctors who consistently provide high-quality, evidence-based care.
  
  
• Streamlined Electronic Submissions – Insurance companies must comply with federal electronic standards for prior authorization requests and develop APIs that integrate with electronic health records so that doctors can check requirements and submit requests directly. APIs must be implemented by 2027.

Medical practices should review and update internal workflows for tracking prior authorization requests, appeal processes and documentation so that they can invoke the protections provided by the new law in the event that insurance companies aren’t in compliance.

Behavioral Health Utilization Review Standards

Colorado House Bill 25-1002 went into effect on January 1, 2026. This new law requires health benefit plans to use nationally recognized, not-for-profit clinical criteria for coverage and utilization review decisions related to behavioral, mental health and substance use disorder treatment. The goal of this law is to align Colorado coverage decisions with federal Mental Health Parity and Addiction Equity Act (MHPAEA) standards.

Medical and behavioral practices should expect changes in insurance criteria as this new law goes into effect. It will be important to align documentation and treatment plan language with the specific national guidelines established by the MHPAEA.

Learn more about the key requirements associated with H.B. 25-1002.

Medical-Aesthetic Service Delegation Disclosures

Colorado recently passed House Bill 1024, which requires physicians who delegate medical-aesthetic services to unlicensed practitioners, such as aestheticians, to make the following disclosures to patients:

• On-Site Signage – Med spas must clearly display a sign at their practice facility informing patients that certain medical-aesthetic services are performed by unlicensed professionals.
  
  
• Online and Advertising Disclosures – Med spas must update the messaging on their website and all advertising materials to clearly state that medical-aesthetic services are delegated to unlicensed practitioners.
  
  
• Patient Informed Consent – Before providing treatment, med spas must have patients sign an informed consent form.

We encourage all medical practices delegating medical-aesthetic services to unlicensed professionals to read our blog covering this new law to understand the important steps required to remain complaint.

Healthcare Practitioner Identification in Advertising

Colorado SB 25-152 goes into effect June 1, 2026. This law requires any ad for healthcare services that identifies an individual practitioner by name must also state the type of state-issued license, certificate or registration held by the practitioner. This law applies to ads by medical practices, hospitals and other entities. The goal of this law is to reduce patient confusion regarding the licenses and certifications held by the practitioners who treat them.

Medical practices should review all marketing materials to ensure every named practitioner includes an accurate credential description that matches their Colorado license.

Elizabeth Lewis Can Help Your Practice Remain Complaint with New Laws

The consequences for failing to comply with these new laws and regulations can be devastating for your medical practice. You may face costly fines, forced corrective actions, increased regulatory scrutiny, administrative citations and, in some instances, suspension of operations. The best way to avoid these consequences is to work with an experienced business lawyer who can review your policies to ensure they adhere to the new regulations going into effect this year. At the Law Office of E.C. Lewis, we’ll make sure you take all the steps necessary to remain compliant.

Elizabeth Lewis has been providing legal services for small businesses in Colorado since 2007, and she has worked with many medical practices to help them navigate the complex laws governing the industry. Elizabeth will provide you with the expert guidance necessary to remain compliant with new laws as they get enacted, and she’ll inform you of any important actions that need to be taken when laws governing medical practices change.

Contact us today to schedule a consultation. The Law Office of E.C. Lewis serves clients in Denver and the surrounding areas.