Colorado lawmakers are crafting a new bill to bolster the state’s safety net clinics and healthcare facilities that assist those who can’t afford medical care. This initiative was highlighted in a recent news conference led by Lt. Gov. Dianne Primavera and other Democratic lawmakers.
The proposal aims to limit healthcare insurance payments made by the state for around 60,000 employees. The anticipated savings, estimated at $50 million annually, would be redirected to community health centers across Colorado.
Rep. Kyle Brown, a Democrat from Boulder, emphasized the plan’s potential to reduce healthcare costs for Coloradans by addressing high hospital prices while safeguarding essential safety net providers.
Nearly a million residents in Colorado depend on community health centers. Simon Smith, CEO of Clinica Family Health & Wellness in Lafayette, noted that many people would struggle to access healthcare without these facilities.
Several challenges have created financial strain for healthcare providers. When the pandemic ended, the federal government instructed states to revisit Medicaid eligibility rules. This process, known as the Medicaid Unwind, affected hundreds of thousands of Coloradans, leading to an unanticipated number of people losing their health insurance coverage.
Smith pointed out that Clinica has seen a rise in uninsured patients, a trend reminiscent of the time before the Affordable Care Act expanded coverage more than a decade ago. The increase in uninsured patients has pressured clinics to make difficult choices, including staffing cuts and program reductions.
Sen. Iman Jodeh from Aurora echoed these concerns, highlighting the struggle that safety net providers face in continuing to offer care. She stressed the importance of maintaining these health services, especially for those with limited options.
As the state navigates a significant budget shortfall, lawmakers are aware of the pressing need for financial support for health centers, especially those in rural areas that are more vulnerable.
Sen. Jeff Bridges brought attention to the overarching challenge: keeping healthcare affordable and accessible for all residents, regardless of where they live or their income level.
Primavera stressed that Colorado’s hospital prices are among the highest in the nation, signaling that action is necessary to support safety net services.
While the bill aims to benefit state employees and taxpayers, some hospital representatives expressed concerns. Julie Lonborg from the Colorado Hospital Association warned that the bill could unintentionally strain hospital finances, as many are already operating with tight margins.
The Colorado Behavioral Healthcare Council also has reservations. Edie Sonn highlighted that while the bill directs funds to primary care providers, it doesn’t adequately address the needs of other essential safety net services, particularly in mental health and substance use treatment.
The new bill proposes several key measures:
- Cap reimbursements for in-network hospitals at 165% of Medicare rates and for out-of-network hospitals at 150%.
- Set a minimum reimbursement rate for primary care and behavioral health services at 135% of Medicare rates.
- Conduct a feasibility study on how local governments and school districts could benefit from these reimbursement limits.
Rep. Brown expects that the bill will be introduced very soon, signaling a significant step toward protecting and enhancing healthcare access in Colorado.
