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Colorado Medicaid Forecast Projects Funding Shortfall and Possible Cuts

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Colorado Medicaid Commission meeting image accompanying a report on the state Medicaid budget forecast.

NEWS BRIEF

Colorado Public Radio reports that state budget officials told the Medicaid Commission that Health First Colorado exceeded its budget by $158 million last year and is projected to exceed it by $443 million this year. A forthcoming state forecast could place the projected gap between about $1.3 billion and $1.5 billion, according to the Governor’s Office of State Planning and Budgeting.

Officials said higher use of services by existing enrollees is a major driver of costs, along with forecast errors the agency says it has corrected. The Department of Health Care Policy and Financing is reviewing administrative costs, hiring practices, compensation and contracts. Lawmakers and advocates said further spending reductions may be considered, but specific program cuts had not been finalized.

What to know

Colorado’s Medicaid agency faces projected budget pressure tied primarily to service use among current enrollees. Officials say they are seeking to reduce the projected overage, while lawmakers indicated that additional spending cuts may be considered; the specific actions remain unsettled.


Reporting: Colorado Public Radio · 09-17-2026

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