We are facing a reality where health coverage for 1 in 5 Coloradans is in jeopardy.
Congressional discussions are underway to significantly defund Medicaid, which is a lifeline to many Coloradans. Making $880 billion in rushed cuts to healthcare programs covering seniors, children and other vulnerable groups would have dramatic consequences:
• More people will be uninsured and won’t access healthcare until an emergency, leading to increased healthcare costs for everyone.
• Providers will be forced to do layoffs, cut services, or close, reducing access to care.
• Our communities will lose jobs and valuable tax revenue, harming our economy during a state budget crisis.
As the CEO of Colorado Access — a Colorado nonprofit and the state’s largest Medicaid plan — and a former Medicaid member myself, I am deeply invested in the value of Medicaid. And I am not alone. Two-thirds of U.S. adults say someone close to them has received help from the Medicaid program. Majorities of Democrats, Republicans and independents are opposed to Medicaid cuts, and this opinion is consistent across both urban and rural areas. Most people think funding should either increase (42%) or be kept about the same (40%).
Looking around at our communities, it’s readily apparent how critical Medicaid is to us and our friends and families: Medicaid covers 63% of nursing home residents, 44% of people with disabilities, and 80% of children living in poverty.
Yet Medicaid is on the chopping block. Republicans in the U.S. House have offered reassurances that the only cuts would be around fraud, waste, and abuse, but getting to billions in cuts would require creative revisions to the definition of fraud. Medicaid is the most efficient coverage available, and fraud is limited. Costs per Medicaid member are substantially lower than private insurance. Regardless of how terms are redefined, reducing Medicaid funding translates to cutting essential health services for people we know and love.
We are fortunate in Colorado, where both Democrats and Republicans in the General Assembly largely support Medicaid. Our legislators understand that Medicaid makes people healthier, creates jobs, and ensures funding for vital roles at local health centers and hospitals. State and federal governments jointly fund Medicaid, and funding expands as needs or costs increase. If Congress were to cut federal Medicaid funding, our local legislators know that our state budget situation, including the current shortfall and impacts of TABOR, would not enable state funds to backfill federal cuts and continue Medicaid as we need it.
Republicans in Congress have also proposed work requirements for Medicaid members, disregarding the fact that most adult Medicaid members work (and make less than $30,000 per year). Two-thirds of adult Medicaid members in Colorado—65%—are employed. The remaining 35% are largely not working due to caregiving responsibilities, being students, or having a disability. Work requirements create administrative waste and jeopardize healthcare for low-income, working Coloradans by adding unnecessary red tape, putting 542,000 Coloradans at risk of losing coverage (47% of the adult Medicaid population).
We just saw a similar situation with the end of the COVID-19 public health emergency, which allowed people to stay enrolled in Medicaid for the duration of the pandemic. Many eligible Coloradans lost coverage due to administrative barriers. We cannot force another situation where people in our state unnecessarily get sicker — and our providers are faced with more care for which they will not be paid.
We must work together to ensure Congress understands the impact that cutting Medicaid would have on Coloradans’ health and our economy. Limited or no affordable options exist for alternative health coverage for these individuals, especially as the enhanced premium tax credits that help people afford insurance are also at risk, and no alternative opportunity exists for providers to get paid for delivering their care. For members of Congress who support cuts to Medicaid, we should hold them accountable for how their constituents will access health care.
This guest column was written by Annie Lee, CEO of Colorado Access, Colorado’s largest public-sector health plan, which has provided affordable health care for three decades.