The Colorado Medical Society is actively monitoring state budget discussions that could impact physician payment for providing care to patients with Medicaid coverage. Governor Jared Polis has proposed a budget for FY 2025-26 that includes $74.6 million in cuts ($22.1 in state General Fund) to provider payments. That includes some $16.6 million in physician related cuts to reduce payments to a 95% of the Medicare payment benchmark.

These proposed rate cuts are raising significant concerns among physicians, particularly regarding how they might affect patient care and the sustainability of practices serving vulnerable populations. Any reduction in Medicaid reimbursement could hinder the ability to deliver quality care, especially in areas already experiencing physician shortages.

Despite the administration’s assurance that the cuts are strategic, some members of the Joint Budget Committee (JBC) are expressing skepticism. They argue that non-essential spending projects should be reevaluated before reducing essential health care funding. Legislators have also highlighted that recent Medicaid rate increases were meant to improve access to care, and reversing this progress could have severe repercussions.

The Colorado Medical Society continues to advocate for policies that support physician practice viability and ensure patients receive the care they need, emphasizing the importance of stable and adequate reimbursement in safeguarding health care access across the state.

How will rate cuts affect your practice? Reply to this email with your concerns and add your voice to our advocacy efforts.