Colorado lawmakers back $90 million loan to stabilize safety-net health providers

Lawmakers on the House Health & Human Services Committee advanced Senate Bill 290 on a 12-1 vote after hearing testimony that Colorado’s safety-net health providers are struggling following the COVID-19 public health emergency and the Medicaid unwinding.

The bill creates a Provider Stabilization Fund seeded by an interest-free interfund loan from the Unclaimed Property Trust Fund totaling $90 million over five years, with repayment required by July 1, 2045. The bill allows private contributions and seeks federal Medicaid matching funds through mechanisms such as Section 1115 demonstration authority. Lawmakers and proponents said the aim is to get money quickly to federally qualified health centers (FQHCs), community behavioral health providers, rural health clinics and other clinics serving low‑income, uninsured and publicly insured Coloradans.

Supporters said immediate funding will help providers avoid layoffs, site closures and service reductions that have already been…