Colorado Governor Jared Polis has proposed significant changes to Medicaid in his budget request for the next fiscal year. He highlighted that Medicaid spending is growing nearly twice as fast as the overall state budget, making the current trajectory unsustainable.
Unsustainable Growth in Medicaid Spending
Polis voiced concerns that without action, escalating Medicaid costs would limit funding for other vital services, chiefly education. Currently, around 1.2 million Coloradans depend on Medicaid for health care. While the governor assured that coverage will remain intact, the services provided will be subject to changes.
Potential Modifications to Medicaid Services
- New prior authorization requirements for various services.
- Increased cost-sharing measures for beneficiaries.
- Revised payment caps on certain benefits.
Among these changes, dental benefits for adults could revert to an annual cap of $3,000, instead of remaining uncapped as previously. Polis emphasized that rising Medicaid expenditures, estimated at nearly 9% annually, threaten to overshadow other necessary state functions.
Financial Implications of the Proposed Budget
The state allocates approximately $16 billion annually for Medicaid, an amount expected to rise by $630 million this year. However, Polis’s budget only accounts for a $300 million increase. This budget framework aims to balance Medicaid’s financial demands with other essential services.
In addition to Medicaid adjustments, Polis has proposed increases in K-12 education funding by $276 million, universal preschool by $14 million, and public safety by $10 million. Moreover, the governor plans to limit tuition hikes in higher education to 2.6%.
Challenges and Solutions in Mental Health Services
Polis also set aside between $8 million to $12 million to enhance civil commitment facilities for individuals with mental health issues. This comes in response to recent concerns over the release of offenders posing public safety risks.
Budget Overview
The governor’s overall budget totals nearly $51 billion, representing a 6% increase from the previous year. Of this, about $19 billion is allocated from the general fund, which directly affects funding for Medicaid and K-12 education.
This proposed budget will undergo further modifications by the Joint Budget Committee before being presented to the Colorado House and Senate for additional adjustments. Ultimately, the finalized budget will require the governor’s approval.
