Colorado Dems Back Sharp Decline in Medicaid Enrollees

TL/DR –

Colorado is among the 10 US states with the highest share of dropped Medicaid enrollees since the lifting of pandemic-era restrictions. The state experienced the largest drop in Medicaid and Children’s Health Insurance Program enrolments, with outdated technology and low rates of automatic renewals being cited as key issues. Despite Colorado having all the policy ingredients in place to cushion the fallout, its administration has been criticized as underfunded and fragmented, leading to higher withdrawal rates.

Colorado Tops the List for High Medicaid Withdrawal Rates

Colorado has the highest Medicaid disenrollment rate among the 10 states that removed the most beneficiaries after the U.S. government ended a pandemic-related protection. It stands out as the only blue state among red states like Idaho, Montana, Texas, and Utah with high withdrawal rates since spring 2023. Colorado’s unique position is due to its comprehensive policy measures to ease the impact of Medicaid unwinding, as per analysts at KFF, a leading health policy research nonprofit.

Understanding Medicaid Enrollment Decline

Despite the safety measures, the state hasn’t fully utilized these resources. KFF data reveals that Colorado has a larger net decrease in Medicaid and the Children’s Health Insurance Program enrollment than any other state except Utah. This decline is attributed to factors like outdated technology and low automatic renewals, which hinder enrollment and undermine progressive policies.

However, state officials offer a more optimistic perspective, attributing the disenrollment to successful job placement during the pandemic and a thriving state economy, leading to more people getting insurance through their employers. But a KFF Health News analysis counters this view, indicating that in counties where unemployment did not decrease or even increased, the Medicaid-covered population also shrunk.

Enrollment Growth and Decline

During the COVID-19 crisis, Colorado’s Medicaid and Children’s Health Insurance Program enrollment increased by 35%, compared to approximately 30% nationally. Regardless of Colorado’s initial claim to have the highest Medicaid enrollment growth, data from the Centers for Medicare & Medicaid Services indicates that other states, such as Indiana, North Dakota, Virginia, and Nevada, also surpassed Colorado’s growth rate. This discrepancy led to queries about the subsequent high disenrollment rate in Colorado.

The Unwinding Impact and County Complications

The surprising extent of Colorado’s Medicaid enrollment losses is due to it being the only state that met all KFF’s criteria expected to mitigate the impacts of the unwinding. A chief issue is that Colorado is among the few states where most of the eligibility verification work falls on counties, adding complexity to the unwinding process.

Colorado’s high withdrawal rate is further exacerbated by a host of technological and administrative issues. Outdated systems like the Colorado Benefits Management System create obstacles, hampering automatic renewal processes, a crucial tool for maintaining enrollment. The state also faces challenges in renewing people with no income or those below the federal poverty level due to system limitations.

Procedural Disenrollments and Uninsured Patients

Approximately two-thirds of Coloradans who withdrew from the program did so for procedural reasons. This has led to over 500,000 Coloradans losing coverage, more than the population of Colorado Springs, its second-largest city. At least one-third of those discontinued were later found to be eligible for Medicaid, indicating a significant discrepancy. As a result, Colorado community health centers and mental health centers report a rise in uninsured patients, suggesting the high withdrawal rate is leading to more uninsured Coloradans.

About 58% of those disenrolled have returned to Medicaid or have new insurance, leaving the fate of the remaining 42% unknown. Colorado is undertaking a survey to determine their insurance status.

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