Purplish Colorado’s budget woes and the ballooning costs of Medicaid
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Mar 27, 2026 Lawmakers grapple with a $1.5 billion shortfall and painful budget choices. Rising Medicaid costs, driven by higher use and recent coverage expansions, are a major factor. Surprise enrollment among immigrant programs and forecasting errors magnified the spike. Proposed fixes range from benefit caps and wait‑list changes to employer fees and ballot measures.
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Parent Caregiving At The Capitol
- Nicole Villis described 20 years of full-time caregiving for her son with Dravet syndrome and the constant, 24/7 demands of his care.
- Villis and other parents wore matching blue t-shirts at the Joint Budget Committee to plead against capping paid caregiver hours that would cut their $9/hour support.
Medicaid Is Now A Budget Giant
- Medicaid now makes up about a third of Colorado's discretionary spending, rivaling K-12 education in size.
- Spending grew roughly 86% in seven years, an $2.6 billion increase that concentrates budget pressure on the program.
A Small Group Drives Half The Costs
- Disabled and older enrollees were 9% of Medicaid enrollment but accounted for roughly 50% of spending in 2023-24.
- Long-term services like attendant care and Medicare gaps drive outsized costs for those populations.