Colorado Health Institute reviews Medicaid expansion and potential cuts in federal funding

A pivotal discussion on the future of Medicaid funding in Colorado unfolded during the House Health & Human Services meeting on March 12, 2025, as representatives heard a compelling presentation from the Colorado Health Institute (CHI). The focus was on the potential impacts of proposed federal budget cuts that could drastically affect Medicaid, the state's largest expense.

Joe Hanel, communications director at CHI, and Suman Mathur, director of the Colorado Health Access Survey, presented data indicating that cuts to Medicaid funding could lead to a significant rise in the uninsured rate. They highlighted that Medicaid expansions have been crucial in reducing the uninsured rate from 14% to as low as 4.6% during the COVID-19 public health emergency. The data suggests that most individuals losing Medicaid coverage due to funding cuts would likely become uninsured, reversing years of progress in health coverage.

The presentation also emphasized the importance of Medicaid in providing access to healthcare, noting that uninsured individuals often forgo necessary medical care due to cost. In stark contrast, those with Medicaid coverage have similar access to care as those with employer-sponsored insurance.

The discussion further touched on the individual insurance market, where tax credits that help many Coloradans afford coverage are also at risk of expiration. Without these credits, many could face skyrocketing out-of-pocket costs, potentially pushing them into the ranks of the uninsured.

As Congress debates these budget choices, the implications for Colorado's health landscape are profound. The meeting underscored the urgent need for policymakers to consider the long-term effects of funding cuts on the health and well-being of Coloradans, particularly the most vulnerable populations. The anticipated outcomes of these discussions could reshape the future of healthcare access in the state, making it a critical issue for legislators and constituents alike.