Senate Advances Bill to Explore a Sustainable Future for Colorado’s Medicaid Program

H.R. 1 and skyrocketing Medicaid costs are threatening the sustainability of Colorado’s Medicaid program

DENVER, CO – Today the Senate gave initial signoff on legislation to establish the Commission on Medicaid, tasked with exploring solutions to implement a sustainable Medicaid program in Colorado.

H.R. 1 and skyrocketing Medicaid costs are threatening the sustainability of Colorado’s Medicaid program. Sponsored by Senators Judy Amabile, D-Boulder, and Jeff Bridges, D-Arapahoe County, SB26-187 would establish the Commission on Medicaid in the Legislative Department to identify and recommend policy changes to implement a sustainable Medicaid program.

“Medicaid saves lives. We have to find a path forward so that instead of moving from one budget crisis to another, we have a real plan to ensure the people most in need get the care they deserve,” said Amabile. “Over the coming months, I’m committed to digging into the data, finding cost savings, and making informed decisions to preserve lifesaving care. This work won't be easy, but I will keep fighting for Colorado families like mine who rely on Medicaid.” 

“Every year we are constitutionally required to pass a balanced budget. This year, it is clearer than ever that TABOR’s rationing limit, Trump’s cuts, and the rising cost of Medicaid are crushing Colorado’s finances and families,” said Bridges. “With this bill, we are creating a plan to preserve lifesaving care, responsibly manage public funds, and build a sustainable future for Medicaid in Colorado.” 

Between May 23, 2026 and December 11, 2026, the commission would be required to meet between six and 12 times to engage and collaborate with representatives of state agencies, Medicaid members, disability advocates, healthcare providers, community-based organizations, and national experts.

The commission would consist of ten legislators including members of the Joint Budget Committee, chairs of the House and Senate Health and Human Services Committee, and members of the minority party.

The commission would be tasked with:

• Reviewing the state Medicaid program’s administrative structures;

• Analyzing current enrollment, eligibility, services, benefits, and payment rates;

• Exploring Medicaid financing and evaluating federal funding optimization; and

• Preparing insights and policies regarding the impacts of the federal H.R. 1 on Colorado’s Medicaid program.

Last year, H.R. 1 created enormous new tax cuts for the wealthiest corporations and slashed revenue for core state services. Once fully implemented, this will mark the largest cut to Medicaid in American history. Meanwhile, Medicaid costs are exploding year over year, far beyond what was forecast by nonpartisan legislative staff. Medicaid is growing at nearly nine percent per year, while TABOR constrains how much more the state can spend each year (about 3.2 percent for next year’s budget).

Medicaid spending is increasing primarily due to inflation and higher costs for existing benefits, higher utilization of services, and higher provider rates, not new benefits or services. The largest growth has been in long-term care, prescription drug coverage, and pediatric behavioral health. 

To close the $1.2 billion budget deficit and deliver this year’s balanced, bipartisan budget, lawmakers reduced healthcare spending, including a $270 million reduction in Medicaid reimbursement rates and some services. This is in addition to the $90 million lawmakers previously cut from Medicaid this year.

SB26-187 is expected to be heard on third and final reading tomorrow.