Medicaid at a Crossroads
This week is the 60th anniversary of Medicaid, alongside Medicare, being signed into law by President Lyndon B. Johnson. For sixty years, Medicaid has improved the health and well-being of millions of American families, including over a million Coloradans.
The history of Medicaid has been one of gradual expansions and growth. Initially a program focused on providing health insurance for very low-income families receiving cash assistance, the program expanded to include more children, parents, caregivers, and people with disabilities over several decades since its inception. In 2014, Medicaid expansion through the Affordable Care Act provided states, including Colorado, the opportunity and funding to broaden eligibility for coverage to individuals and families up to 138 percent of the federal poverty level.
During the COVID-19 pandemic, the federal government allowed individuals to be continuously eligible for Medicaid regardless of changes in their circumstances. This meant the Medicaid population grew to a record high of 94 million people by April 2023. Medicaid served its purpose as the safety net for so many people during a turbulent time when many lost their jobs – and health insurance – amid the greatest pandemic of our lifetime.
These gradual expansions reflect the value of Medicaid. The research is clear: Medicaid helps kids thrive, keeps people healthy, allows them to work, and provides financial benefits to individuals and the state. Medicaid has also been a key mechanism for advancing health equity and reducing disparities. Medicaid is a critical part of our social safety net and a cornerstone of our health care system.
Today, on the anniversary of its enactment, Medicaid sits at a crossroads. Instead of celebrating with recognition of the many ways that Medicaid strengthens our communities and looking forward to innovations that make us healthier and more secure, we’re facing a road ahead with the biggest cuts to Medicaid in the history of the program.
The passage of the One Big Beautiful Bill Act (OBBBA) threatens the progress of the last sixty years by significantly cutting federal Medicaid funding, instituting burdensome work requirements, limiting how states can finance the program, and other changes. The new law represents a significant shift away from federal support for Medicaid and leaves states, like Colorado, in the perilous position of having to backfill billions of dollars to maintain current levels of coverage and benefits. Our state simply won’t be able to fill that gap, and we are likely to see substantial coverage loss, with ripple effects across our state and country over the coming years.
We, at Colorado Access, know our members, our providers, and our communities depend on Medicaid. We are committed to working together to navigate what lies ahead and keep our long-term goals of a healthy, equitable society at the forefront. We look forward to a different kind of celebration when Medicaid turns 70, 80, 90, even 100 – a time when we can hopefully celebrate new ways of providing care and coverage that means no one worries about how they’ll see a doctor when they’re sick and everyone has access to a just and inclusive health care system.
