Graceride asks Pueblo council to back letter pressing state to release Medicaid reimbursements; cites local patient access impact

At the May 12 work session, representatives of Graceride Medical Transportation and Colorado Secure Transportation asked Pueblo City Council for a support letter urging the Colorado Department of Health Care Policy and Financing (HCPF) to resume reimbursements and to consider Graceride’s proposed expansion centered in Pueblo.

Frazier Gobina, identified in the presentation as owner and CEO of Graceride Medical Transportation, told the council that Graceride has not been reimbursed by HCPF for Medicaid non-emergency medical transportation (NEMT) services since a statewide investigation and prepayment review began in August 2023. Gobina said the company continued to provide trips during the review and was later cleared by HCPF of fraud, waste or abuse, but reimbursements have not resumed.

“Since Graceride started operating in the Pueblo community, we have invested close to $2,000,000 of our own resources,” Gobina said. He described thousands of now-unserved patients and said roughly 275 other providers statewide were shut down during the investigation, which the presenters said reduced access to transportation for Medicaid recipients needing dialysis, cancer treatments, behavioral-health and addiction services.

Jason Wilson, CEO of Colorado Secure Transportation, said lack of reliable NEMT capacity also affects behavioral-health patients and can leave people stranded after discharge from out‑of‑community facilities. He described cases where patients discharged from Denver or Colorado Springs lack a guaranteed NEMT return trip under current reimbursement practices, particularly for trips over 25 miles.

Gobina said Graceride has proposed to HCPF a plan that would make Pueblo the company’s headquarters and expand service to roughly 20 counties, creating jobs. He said the firm would invest approximately $3.5 million under that plan and employ about 220 drivers and staff — “the majority of those staff members will be employed from the Pueblo community,” he said.

Councilor Flores asked how the council could help. Gobina requested a support letter from the city addressed to HCPF describing the company’s role and the community impact of withheld reimbursements. He said some county commissioners have already provided support letters after conducting due diligence.

Councilors did not vote on any action but council members indicated they would consider preparing a support letter for HCPF. The presenters said they will continue to pursue discussions with HCPF and provided contact information to city staff.

No council or staff representative made financial commitments during the session; presenters framed the request as a political and advocacy step to encourage the state agency to clear outstanding payments and consider Graceride’s proposed expansion centered in Pueblo.