In his final state budget request, Colorado Gov. Jared Polis proposed cutting more than $600 million in projected Medicaid spending, saying that the state simply can\u2019t afford to continue paying so much for healthcare.<\/p>\n
Polis released his annual budget proposal on Sunday in a letter to the legislature\u2019s Joint Budget Committee<\/a>, then presented it to reporters at a Monday news conference, where he pushed back at the idea that he was cutting healthcare spending.<\/p>\n \u201cLet no one say that \u2014 in any way, shape or form \u2014 this budget cuts healthcare funding,\u201d Polis said. \u201cIt actually increases it.\u201d<\/p>\n In reality, Polis is proposing a $250 million increase in the Department of Health Care Policy and Financing\u2019s general fund budget \u2014 but that\u2019s not nearly enough to continue funding the program\u2019s existing services, which would have to be cut back significantly to hit Polis\u2019 funding target.<\/p>\n Earlier this year, program officials warned<\/a> that their latest projections showed that costs would rise by more than $900 million in next year\u2019s budget, which starts July 1, unless lawmakers make major cuts to the services Medicaid provides to low-income households and those with disabilities.<\/p>\n In Colorado, the governor\u2019s budget recommendation is just that: a suggestion that lawmakers can take or reject when the JBC writes the budget over the coming months. And with Polis leaving office in January after two terms, his request for the 2027-2028 fiscal year \u2014 which is always due on Nov. 1 \u2014 may have even less sway at the state Capitol than usual.<\/p>\n Polis\u2019 budget identifies about $300 million in cuts<\/a>, including eliminating adult and senior dental care coverage, in-home physical therapy, and Cover All Coloradans<\/a>, the program that extends healthcare to immigrant children and pregnant women living in the U.S. without legal permission.<\/p>\n It would also reduce payments to teaching hospitals with medical residency programs<\/a>, eliminate some funding for pediatric hospitals and reinstate prior authorization requirements for behavioral healthcare services.<\/p>\n Polis\u2019 Medicaid budget also relies on another $300 million-plus in unspecified cuts that his letter says will be identified later, but he insisted that he had no intention of kicking people off the federal program, which provides health insurance to around 1 in 5 Coloradans.<\/p>\n \u201cThat\u2019s not what this is about,\u201d he said. \u201cIt needs to be there for people who need it.\u201d<\/p>\n Polis said he expected the next governor would share his values and agree that Medicaid spending had to be curtailed to avoid deeper cuts to other services.<\/p>\n \u201cIf the governor doesn\u2019t bring Medicaid spending in line with growth, then there would be cuts to K-12 or higher education, so that would certainly be good questions to pose to the next governor-elect,\u201d Polis said. \u201cBut I believe that they would share the values of funding our schools and not throwing people off of Medicaid and making sure we have a sustainable route.\u201d<\/p>\n Polis\u2019 replacement, who will be elected Tuesday<\/a>, will be sworn in on Jan. 12. The JBC begins its work on the budget later this month, and Polis said he would present an updated budget request in early January. The January update will account for the results of several November ballot measures that could dramatically change the state\u2019s budget outlook if they pass.<\/p>\n Polis proposes limiting the growth in healthcare spending to 4.3%, a target that would match how much the state is allowed to increase its spending under the Taxpayer\u2019s Bill of Rights. The constitutional amendment known as TABOR limits state revenue to the combined rate of consumer inflation and population growth.<\/p>\n Medicaid has long been incompatible with that limit<\/a>. Since 1994, the first year TABOR\u2019s spending cap was in effect, the state healthcare budget has grown 828%. The cap has only risen 271% in that same period, requiring cuts to education and other services.<\/p>\n The proposal got an icy reception from healthcare advocates, who chastised Polis for supporting Medicaid cuts, while opposing the preferred solution of progressive Democrats \u2014\u00a0Amendment 87\u2019s proposed tax hikes on the wealthy.<\/p>\n \u201cGov. Polis\u2019 suggested budget cuts put the health of vulnerable Coloradans at risk and exacerbate an already worsening affordability crisis,\u201d Adam Fox, deputy director at the Colorado Consumer Health Initiative, said in a statement. \u201cCuts aren\u2019t a solution for Coloradans struggling to afford healthcare or other basic necessities.\u201d<\/p>\n Here are some other highlights from the governor\u2019s budget proposal:<\/p>\n Polis said he wants to continue to put money toward the state\u2019s new school finance formula<\/a>, increasing per pupil funding by $488. The formula is in year two of its seven-year phase-in period.<\/p>\n