DENVER — As Colorado weighs potential reductions to Medicaid services, the state's largest Medicaid administrator says providers are concerned about funding sustainability and rising healthcare costs.
“We are mostly worried about making sure that our members don't feel these impacts,” said Liz Owens, the VP of Government Relations at Colorado Access. “We're just working closely with them to understand the budget cuts, to mitigate where we can, and to make sure our providers and our members feel supported.”
Colorado Access has been managing the care for Medicaid members in Adams, Arapahoe, Denver, and Douglas counties for 30 years. They serve over 500,000 members.
The state needs to reduce spending by nearly $1 billion.
In his 2026-27 budget, Governor Polis is proposing to slow Medicaid growth. Funding would increase 5.6% or $298 million. That is less than the 11.9% projected growth rate or an additional $333 million in spending.
The budget would limit some Medicaid services by requiring prior authorization for additional medical services, capping dental benefits, and rolling back increases approved to reimburse providers.
The Governor’s office said in the budget proposal that the reduction is “necessary because rapid growth in Colorado’s Medicaid program poses the most significant challenge to the State’s long-term fiscal health.”
Medicaid spending outpaces all other types of spending in the state budget.
Owens says this comes after federal cuts to Medicaid and changes in the eligibility process.
“Health care costs are rising. We are seeing our own trends of costs increasing, a lot of it related to the acuity or how sick our members are, and so we are going to have to be creative,” Owens said.
Colorado Access is hearing the concerns of providers and members and continuing conversations with lawmakers.
Even as the possibility of state funding cuts looms, Owens says Medicaid will survive.
“Our mission is not changing. We are here to help our members receive quality care in our communities, and so we really want folks to know that Medicaid is not going away, that we're here, and quality care is still our primary focus.
The Governor submitted his initial budget proposal on October 31st. He will submit another in January. The state legislator will vote on the budget proposal in March.
Colorado Access encourages members to keep their information up to date for future eligibility and service changes.
Members can update their information by visiting co.gov/peak [co.gov], using the Health First Colorado app, or visiting their local county human services office in person.
