Federal Cuts to Health Care
On Feb. 12, the House Budget Committee unveiled a budget resolution proposing a $2 trillion reduction in mandatory spending over the next decade. If enacted, these cuts would severely impact Medicaid funding and other supports, significantly threatening access to essential health care services.
The House Budget Committee circulated a detailed list of potential cuts on Jan. 17. Based on CHA’s analysis, these proposals could eliminate anywhere from $9 billion to $27.2 billion in federal funding to Colorado’s health care system over the next five years.
Difficulties on All Sides
Hospital Finances Are in Trouble
More than 70% of Colorado hospitals provide care with unsustainable margins. The combination of growing expenses, regulatory requirements, and increasing administrative and reimbursement challenges have destabilized our hospitals.
Fewer Patients Have Insurance
After the pandemic, half a million Coloradans lost Medicaid coverage. Those patients still need care, and hospitals provide it without getting paid for it.
Worrisome Federal Proposals
The federal government is considering policies that could hurt Colorado patients by curbing access to the care they rely on.
Billions in investment already: Colorado hospitals fund $5 billion for the state’s health care system with current payments for Medicaid, HCPF administrative costs, out-of-network hospital rate setting, Colorado Option rate setting, and more. See how it adds up.
