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Dear Valued Stakeholder,
Over the past several months, I have spent time with legislators, members, providers, advocates and other partners discussing Colorado’s Medicaid program and the challenges ahead. I am grateful for your expertise, perspectives and partnership.
October brings several important federal developments. Through the Rural Health Transformation Program, Colorado is directing nearly $170 million to 91 rural health care providers, supporting approximately 250 projects across rural and frontier communities. Rural communities know what they need, and these investments will help turn locally driven ideas into action to strengthen access to care. A complete list of awardees is available on the RHTP website.
Federally required immigrant eligibility changes also took effect October 1, meaning some Coloradans who qualified for Health First Colorado, Colorado’s Medicaid program, are losing coverage based on their immigration status. We are also preparing for additional H.R. 1 eligibility changes beginning in January, including Medicaid work requirements, also known as community engagement, and more frequent renewals for certain adults. Resources are available in our H.R. 1 toolkits, and I encourage you to join our October 26 webinar for updates on implementation, member impacts and resources.
In a separate federal development, HCPF is disappointed by the recent decision in Texas v. Kennedy. We remain committed to supporting people with disabilities to live, work and participate in their communities with independence and choice while we review what the decision means for Colorado.
At the end of the month, the Governor will release next fiscal year’s budget proposal. We face a significant fiscal challenge. HCPF ended last fiscal year with a nearly $160 million General Fund overexpenditure and currently forecasts a preliminary overexpenditure of more than $400 million General Fund this fiscal year if no action is taken. HCPF is continuing to try to manage the growth in acute care services, especially pharmacy benefits, behavioral health and community-based long-term care.
We take our responsibility for addressing this year’s forecasted spending seriously. Effective September 21, we took action to address spending that is directly in our control, HCPF administration. We implemented a hiring freeze and paused discretionary compensation actions, non-essential travel and other discretionary spending.
As we make difficult decisions, protecting member health and safety will remain a core commitment. We are focusing our actions on driving administrative efficiencies, aligning benefits and services to maximize value, strengthening program integrity and fiscal accountability, and maximizing federal and non-General Fund resources.
We cannot do this work alone. We will need all of us to work together to find solutions that support sustainable Medicaid and Child Health Plan Plus programs. Thank you for continuing to ask hard questions, share your expertise and work alongside us as we navigate the months ahead.
Gretchen Hammer
Executive Director
Colorado Department of Health Care Policy and Financing
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