Colorado Medicaid

October 20, 2011

Did you know?

• Medicaid spending consumes more than 20% of Colorado’s annual General Fund budget
• Colorado’s Medicaid enrollment is just shy of 600,000
• Colorado’s Medicaid enrollment is projected to grow 44% by 2014 if the Patient Protection and Affordable Care Act is fully implemented
• From FY2011-12 to FY2024-25, Medicaid expenses are expected to grow by $2.5 billion dollars and will consume over 27% of the Colorado General Fund¹
• Nationally, states will increase Medicaid spending by $15.9 billion in 2012 and at the same time they will reduce spending on K-12 education by $2.5 billion

MEDICAID: WHAT OTHER STATES ARE DOING…

Rhode Island

• Received a Global waiver from the federal government in 2008 that was structured similar to a block grant
• Key reforms:
  • Eliminated the “any-willing provider” rule
  • Replaced with competitive bidding
  • Greater focus on preventative care, especially for seniors
• Reforms saved the state $1.2 billion in the first two years

Florida

• Implemented a pilot plan shifting Medicaid program into a managed care model
• Under new model, state purchases health care plans from private managed care providers
• Savings came from:
  • Greater coordination of patient care
  • Eliminating unnecessary office visits and treatments
  • Greater oversight of charges

Illinois

• Requires Medicaid bills to be paid earlier and requires a full month of pay stubs, rather than a single pay stub for those seeking enrollment
• The state saved over $600 million over five years by enacting these simple changes

1. “Financing Colorado’s Future, An Analysis of the Fiscal Sustainability of State Government,” University of Denver Center for Colorado’s Economic Future. April 2011.

Common Sense Policy Roundtable is a non-profit free-enterprise think tank dedicated to the protection and promotion of Colorado’s economy. CSPR actively follows tax and budget related legislation and initiatives.