Governor Jared Polis announced a reversal of the state’s plan to increase reimbursement rates for healthcare providers serving Medicaid recipients, aiming to address a $750 million budget shortfall due to federal tax and spending changes. This decision saves the state approximately $38 million and is part of broader budget cuts totaling $252 million, which also includes $12 million from higher education and $2 million for health disparity grants. Crucially, funding for public schools and public safety remains untouched.
Polis is set to present these budget adjustments to the Congressional Joint Budget Committee (JBC) and has indicated an additional Medicaid registration issue may require tapping into the budget for about $325 million. The governor noted that cuts would begin soon and emphasized that while difficult, these decisions were necessary.
Key cuts included $105 million from an affordable housing program, reduced funds for state universities, health agencies, and various healthcare programs, including Medicaid pre-authorization spending. An employment freeze is expected to save another $3 million. Despite the cuts, the governor expressed the hope for future renewals of health insurance premium discounts and emphasized support for comprehensive healthcare provisions.
Overall, while the budget cuts are significant, Polis has prioritized maintaining funding for key areas such as education and public safety, with concerns about the long-term impact of recent federal legislation on Colorado’s finances.
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