House Leadership Asks Federal Government for Relief from Medicaid Mandates

DENVER—As the Colorado House of Representatives is about to take up next year’s state budget, House Republican leadership called on Colorado’s congressional delegation to give the states the freedom they need to end the crushing budget effects created by federal Medicaid mandates. 

In a letter sent to all members of Colorado’s congressional delegation, House Speaker Frank McNulty and House Majority Leader Amy Stephens said:  

“The expansion of Medicaid has put Colorado in a difficult fiscal situation.  Federal government mandates and inducements have encouraged growth and spending that is simply unsustainable and inconsistent with the principles of responsible budgeting.” 

In the last ten years, Colorado’s Medicaid enrollment rate has jumped from 275,299 in fiscal year 2000 to 2001 to 553,407 in fiscal year 2010 to 2011—a 101 percent increase. 

Currently, the Colorado Department of Health Care Policy and Financing receives $5.1 billion in funding, that’s $477 million more than is spent by the state’s departments of Transportation, Corrections and Higher Education combined. 

“We must have a safety net to protect those Coloradans most in need, while avoiding the heavy handedness that is constraining our state budget,” added McNulty, R-Highlands Ranch. “Without providing program flexibility, federal Medicaid mandates will continue to force more money into the program at the expense of K-12 education and higher education.”   

The letter sent to the delegation states in part:  

“The mandates that come with accepting federal matching dollars have essentially created a situation that requires Colorado to cut two dollars from a Medicaid program in order to achieve one dollar of savings for our state’s taxpayers.  This system is not sustainable.”

Stephens, R-Monument, added, “We’re not calling for more money from the federal government.  We’re calling on our congressional delegation to end federal mandates and to work with us to find a solution that better fits Colorado’s needs.” 

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