Gov. Jared Polis released his budget request for next year, and Medicaid will take a big hit. The governor says the health insurance program for low-income Coloradans is growing at nearly twice the rate of the state government overall.

Polis says, if the state doesn’t slow the rate of growth, the program will crowd out everything but funding for schools in the next few years.

In the state, 1.2 million Coloradans rely on Medicaid. The governor says none of them will lose coverage, but what that coverage looks like will change. 

“There’s two levers on Medicaid,” Polis said during a press conference. “One is how many people you cover, and two is what you cover.”

Polis’ budget request hones in on what services Medicaid covers.

“There have been a number of benefits that have been added in recent years,” Polis continued. “Some of those are not sustainable over time.” 

Polis’ budget would require prior authorization for more services, more cost sharing and new payment caps. 

“For instance, whereas dental benefits for adults was at $1,500 and then was uncapped, Polis said. “We are saying don’t go back to $1,500, but go back to a $3,000 annual cap.”

The governor says Medicaid is growing by nearly 9% each year, double the rate of spending on other parts of government. He says it’s unsustainable. 

“The increases in Medicaid costs would crowd out essentially everything the state does,” Polis said. “We would largely just fund schools and do Medicaid — no money for roads, no money for public safety.”

According to the Colorado Department of Health Care Policy and Financing (HCPF), long-term care for older Coloradans and those with disabilities is driving the increase in costs. HCPF says it makes up about 5% of Medicaid enrollment but accounts for about half of all claims.

The state spends about $16 billion each year on Medicaid, which was projected to grow by $630 million this year. Polis’ budget provides about half that $300 million.

Polis also increases spending on K-12 schools by $276 million, universal preschool $14 million, and public safety by $10 million, while limiting higher education tuition increases to 2.6%.

Additionally, the governor set aside $8 million to $12 million to increase the number of civil commitment beds after CBS Colorado reporting on dangerous offenders with mental health issues being released. 

“We are holding money for a supplemental in this area and working with law enforcement and legislators on the policy and hope that we can bring that forward in January or sooner,” Polis said. 

The governor cut funding for 12 of the 17 state departments, saving about $25 million in all. Public safety saw the biggest increase — about $11 million.

Polis’ total budget adds up to nearly $51 billion, which is about a 6% increase over last year’s budget. Of that amount, $19 billion is the general fund, which is what lawmakers have most control over and where funding for Medicaid and K-12 schools originates.

The governor’s budget is a starting point. The Joint Budget Committee will make changes to it and send its budget to the Colorado House and Senate. They will make more changes before the final budget goes to the governor for his signature.

DENVER (KDVR) — Open enrollment season kicks off in just a couple of days. SNAP benefits are set to run out at the same time on Nov. 1.

Some leaders on Capitol Hill say Americans should prepare to be sticker-shocked by an increase in premiums. This is all coming with no deal on healthcare subsidies as Congress remains shut down.

Open enrollment begins with no deal on healthcare

We heard from both Democrats and Republicans representing Coloradans on Capitol Hill.
They have different thoughts about how we got to this point and what could happen next.

“This is going to impact everybody, even if you are on an employer-sponsored healthcare. That’s why we need to fix this,” said Congressman Jason Crow, a Democrat representing the state’s 6th Congressional District. “House Speaker Mike Johnson has closed the House of Representatives. He has not convened Congress for about a month now. So that prohibits our ability to negotiate, to debate, to discuss the path forward. So they actually just need to reopen negotiations, reopen the Congress and in the case of the President, he needs to come back to the United States so we can strike a deal.”

Democrats in Congress are sounding the alarm ahead of open enrollment. Some people getting their insurance through the open market are already seeing cost projections ahead of November 1st, like Mike, a retiree from Littleton.

“I could finally afford to retire early, knowing I would still have healthcare. My plan through Cigna today costs $936 a month. Thanks to the ACA tax credits, I only pay $141. Without that subsidy, it would be completely unaffordable. It’s a game changer for me and millions of others,” Mike said.

The state estimates 225,000 Coloradans rely on the subsidies, saying they are set to average an increase of 101% statewide. Some members of Congress say there will be a trickle-down impact.

“When people see that shocking number, far too many are going to choose to opt out and that puts us all in a vulnerable position and especially them. The skyrocketing cost will hit all of us. They will be able to adjust, but we need action now. We need leadership in Washington to care about working families,” said Congresswoman Brittany Pettersen, a Democrat representing Colorado’s 7th Congressional District.

Some Colorado Republicans in Congress are standing firm against the subsidies, saying they need reform before they can approve them.

“These subsidies that democrats are talking about are going to illegal immigrants. If we want to get the cost of healthcare down in Colorado, we have to stop paying for illegal immigrants. We have to stop being a sanctuary city and state, and we have to cut the red tape and regulations in Colorado that is strangling our economy to include healthcare,” said Congressman Gabe Evans, a Republican representing Colorado’s 8th Congressional District.

It’s important to note that those subsidies are only available to people in the nation lawfully.
They expire at the end of the year.

SNAP benefits set to run out on Saturday

With the federal government still shut down, SNAP benefits will halt for families across the nation. So how is Colorado going to handle it? Can there be a compromise or even a lawsuit that can stop it? While some continue to urge the federal government to act, the state of Colorado moved ahead with its plan to help cover for it.

Democratic members of the House Committee on Agriculture joined Colorado Congressman Joe Neguse on Wednesday in urging the Trump Administration to use $5 billion in contingency funding for food assistance.

“The Trump Administration has made a conscious decision to, and deliberate choice, to suspend snap benefits,” said Congressman Neguse, a Democrat representing Colorado’s second congressional district. “Over five billion dollars available today that could be used. That must be used under the law so that hungry families don’t starve.”

President Donald Trump and Speaker of the U.S. House Mike Johnson have said those funds cannot be used to cover the benefits.

“There was a memo that went out, basically saying that those contingency funds are supposed to be used in an emergency. That’s normally a natural disaster or something like that, not a government shutdown. So I think them talking and Speaker Johnson has talked about this and Trump has, basically saying this isn’t an emergency,” said Michael Fields, FOX31 political analyst and Republican strategist.

The calls from Congress come after Colorado Attorney General Phil Weiser joined more than 20 other states in suing the USDA Secretary over the suspension of the benefits, marking the 40th time the state has sued the Trump administration. Fields said he does not think the administration will act on the emergency relief or lawsuit.

“I don’t think that it’s good policy. It’s not going to work. The fact that we are suing the federal government 40 times, I don’t think, is something that we should be celebrating, given the fact that this is all taxpayer money that we are talking about,” Fields said. “So I don’t think they are going to win this case. I think Phil Weiser should be putting pressure on Senator Hickenlooper and Senator Bennet to vote to reopen the government.”

The state’s Joint Budget Committee approved the use of $10 million in state funding to help offset the loss of SNAP dollars. JBC members said the funds go to food banks and pantries in the state to help meet demand, as the state cannot issue SNAP benefits.