With President Trump’s domestic policy bill now signed into law, major changes to health care funding—especially Medicaid—are on the horizon, and Colorado officials are warning of significant consequences.
Kim Bimestefer, executive director of Colorado’s Department of Health Care Policy & Financing (HCPF), expressed concern in a July 3rd statement:
“The bill is anticipated to result in the large-scale loss of health insurance coverage for Coloradans and an extraordinary cost shift to our state that Colorado’s state budget cannot absorb.”
What’s at Stake?
What is Medicaid?
Medicaid is a public health insurance program for low-income individuals and people with disabilities. It’s funded jointly by state and federal governments, and each state sets its own rules. Colorado’s Medicaid program—Health First Colorado—covers a wide range of services including:
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Primary care visits
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Lab testing
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Dental services
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Childbirth
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Mental health treatment
How Many Coloradans Rely on Medicaid?
Last year, nearly 1.4 million Coloradans were enrolled in Health First Colorado—including around 500,000 children. That means about 1 in 4 residents is covered. Medicaid funds also go toward long-term care and prescription drug costs.
Enrollment numbers by county:
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Larimer County: ~70,000 enrolled
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Weld County: Even higher enrollment
Medicaid coverage has steadily grown, especially after Colorado expanded eligibility in 2015 through the Affordable Care Act (ACA).
How Will Federal Cuts Affect Colorado?
The new law introduces major changes, including:
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Work requirements for certain Medicaid recipients (starting December 2026)
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Cuts to federal taxes that help support rural hospitals
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New co-pays for some health care services
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Reduced ACA subsidies and limits on automatic Marketplace enrollment
While some changes won’t take effect for another year or two, their long-term impacts could be significant. According to state estimates:
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377,000 Coloradans may lose Medicaid coverage due to work requirements
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Tens of millions of dollars in administrative costs will be needed to implement the changes
The bill also includes $50 billion over five years to support rural hospitals, though many experts believe it won’t fully offset the damage from other funding cuts.
Broader Health Care Impacts
In addition to Medicaid changes, the law may affect those who get coverage through the ACA Marketplace. Subsidies will shrink for some, and automatic re-enrollment will be restricted, potentially making it harder for people to stay insured.
As Colorado braces for the shift, health advocates and state officials are preparing for the challenges ahead—especially in rural areas and among vulnerable populations.
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