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Colorado Medicaid agency reports $157.9 million budget overrun

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Cleared source reference image for a report on Colorado Medicaid budget projections.

NEWS BRIEF

The Denver Post reports that Colorado’s Medicaid agency exceeded its 2025-26 budget by $157.9 million and is projecting a $443 million overrun in the current fiscal year. State officials cited rising prescription drug and long-term care costs, benefit and eligibility expansions, revenue limits and administrative payment errors. Officials described the current-year estimate as preliminary, while lawmakers examine additional spending reductions after earlier Medicaid cuts took effect in July.

What to know

Colorado’s Medicaid program serves more than one in five residents, according to the report. The agency’s projected $443 million current-year overrun is preliminary, and officials said recently adopted cuts may still produce savings as the fiscal year continues.


Reporting: Robert Tann · The Denver Post · 09-17-2026

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