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Colorado Sun

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Colorado Warns Proposed Federal Rules Would Cut Medicaid Funding

Colorado officials say newly proposed federal rules would have a "disastrous" effect on Medicaid and other insurance funding streams, further straining an already stressed state budget. The state warns that lost federal funding under the proposal would force difficult tradeoffs in coverage and spending. Details on the specific federal rule's scope, comment deadline, and mechanism are not fully specified in the source report. State officials are raising alarms as the proposal moves through the federal rulemaking process.

Colorado Sun

State Policy·CO·6d ago

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.

Colorado Sun

State Policy·CO·13d ago

Colorado Faces $1.6B Budget Deficit Driven by Rising Medicaid Costs

Colorado projects a $1.6 billion state budget deficit for fiscal year 2027-28, driven primarily by escalating Medicaid costs. The shortfall reflects ongoing healthcare cost growth pressures that state lawmakers must address through budget adjustments, potential service cuts, or revenue increases. Colorado operates a managed care delivery system serving over 1.5 million Medicaid enrollees. The deficit timing suggests state agencies and health plans should anticipate potential capitation rate pressures, benefit changes, or provider rate adjustments in upcoming budget negotiations.

Colorado Sun+1 more

State Policy·CO·32d ago

Colorado Implements 80-Hour Monthly Work Requirement for 377,000 Medicaid Enrollees

Colorado has mailed notices to 377,000 Medicaid enrollees informing them of new work requirements to maintain coverage. Beneficiaries must document at least 80 hours of work per month to remain eligible. The state Medicaid agency is implementing the requirement following federal approval. The policy affects non-elderly, non-disabled adult enrollees and represents one of the largest work requirement implementations since CMS authorized states to pursue such waivers.

Colorado Sun

State Policy·CO·44d ago

Colorado Suspends Medicaid Coverage for Youth Gender-Affirming Care Under Federal Rule

Colorado will suspend Medicaid coverage for certain gender-affirming care services for youth in response to a new federal rule prohibiting federal funding for such care. The change affects hundreds of transgender youth currently receiving services through Colorado's Medicaid program. The suspension takes effect as the state complies with the federal funding prohibition. This represents a significant shift in covered benefits for a vulnerable population and raises operational questions for managed care plans regarding care coordination and coverage determinations for affected enrollees.

Colorado Sun+3 more

State Policy·CO·74d ago

Colorado Medicaid Owes $8 Million in Federal Funds for HCBS Claims

An Office of Inspector General audit found Colorado Medicaid improperly claimed at least $8 million in federal funds for in-home disability care services. The OIG identified an additional $45 million in federal payments requiring further review. State officials acknowledged billing errors but stated no fraud occurred. The audit examined home and community-based services claims, a program area where improper billing has drawn increased federal scrutiny. Colorado must repay the federal share of identified improper payments.

Colorado Sun