Governor Bill Ritter signed the Colorado Healthcare Affordability Act into law Tuesday, which will allow the state to collect fees to help cover healthcare costs for uninsured patients.

Governor Ritter calls the Act (House Bill 1293) the most significant health reform legislation in Colorado in four decades.

Officials say under the new law, the state will generate an additional $600 million a year by collecting a provider fee from hospitals, and receive an additional $600 million in federal Medicaid matching funds.

They say the combined $1.2 billion will expand Medicaid and Child Health Plan Plus programs and improve hospital reimbursement rates for services provided through Medicaid and the Colorado Indigent Care Program.

The Governor says the new law will provide health coverage to more than 100,000 uninsured Coloradans and reduce uncompensated care and cost-shifting in the healthcare system.