Potential Medicaid cuts threaten rural healthcare in Colorado

Colorado lawmakers are facing a $1 billion budget shortfall, prompting discussions about potential cuts to Medicaid, which supports 1.2 million residents. The program accounts for one-third of the state’s general fund budget, making it a target for reductions. Cuts could severely impact rural hospitals and nursing homes, which rely heavily on Medicaid funding. Many providers already struggle with low reimbursement rates, and further reductions could lead to service cuts or facility closures, particularly in underserved areas. Federal proposals to reduce Medicaid funding could exacerbate the situation. Colorado may need to find alternative funding sources or face a significant increase in uninsured residents, as many low-income individuals depend on Medicaid for essential health services.