State Policy · CO
Colorado Considers Cutting Peer Support Services After 286% Cost Increase
Colorado lawmakers are targeting cuts to Medicaid-funded peer support services for addiction recovery after program spending increased 286% since the state authorized payment for peer counseling in 2021 through bipartisan legislation. The rapid cost growth has prompted state officials to examine whether to scale back or restructure the benefit. The timing of any benefit changes has not been announced. This matters for managed care organizations and behavioral health providers delivering substance use disorder services through Colorado Medicaid, as peer support has become a standard component of recovery-oriented care models.
Why it mattersMCOs and SUD providers in Colorado face potential network and service delivery disruptions if the state restricts or eliminates a benefit that has been rapidly scaled since 2021.