MEDIA RELEASE
Wed., April 8, 2026
DENVER – Today, the Colorado Consumer Health Initiative announced its support for a bold plan in the State’s Budget to save taxpayer money by ensuring fair rates for care provided under the state employee health plan to preserve critical programs for Coloradans.
While the state faces a $1.5 billion shortfall, the proposal seeks to cap the payments for services delivered to state employees to boost resources to underserved Colorado communities. This would save crucial state dollars that can be reallocated towards other programs facing cuts, like pre-K, stabilizing Medicaid provider rates, or substance use disorder services.
Oregon and Washington have implemented similar fair pricing ceilings for state employees, garnering millions in savings and making premiums more affordable. With a reimbursement rate cap of 165% of Medicare rates for the same services, Colorado could save nearly $42 million from the General Fund.
“Coloradans saw their premiums rise by 101 percent in the past year, and more people are getting pushed off Medicaid coverage,” said Isabel Cruz, Policy and Advocacy Director at the Colorado Consumer Health Initiative. “By paying fair prices for services for state employees, our state can redirect those funds towards critical programs that are seeing cuts in the state budget. Our state employee health plan should not be overpaying for services when we have seen $3 billion in cuts in the last 2 years.”
“We know that Coloradans want affordable health care – not more cuts to the services they need,” said Caitlin Westerson, Senior Director of State Policy and Advocacy at United States of Care. “This proposal would potentially save the state tens of millions of dollars. That would allow Colorado to keep critical services like pre-K and substance use disorder services funded. It’s good health policy, it’s good fiscal policy, and it’s good for Colorado.”
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