More than 21,000 undocumented individuals in Colorado are at risk of losing their Medicaid coverage if the Republicans’ bill to extend 2017 tax cuts is approved by Congress. The legislation, known as H.R. 1, includes a provision that penalizes states like Colorado for using their own funds to cover undocumented individuals. While Colorado currently provides Medicaid coverage to undocumented children, coverage for adults is limited to pregnant and postpartum women.
If the bill passes, the federal government’s share of costs for the expansion population, which includes adult citizens earning up to 138% of the poverty line, would decrease from 90% to 80%. This reduction would force states to either come up with millions of dollars to cover this population or to stop insuring undocumented individuals. Governor Jared Polis estimates that Colorado could lose approximately $300 million in federal funding annually if the federal government reduces its share.
The Congressional Budget Office predicts that about 11.8 million people would lose coverage, with the majority of cuts coming from Medicaid, if the bill is enacted. This would result in a $1.1 trillion reduction in federal spending on health insurance programs. Additionally, the bill would increase the deficit by $3.3 trillion due to tax cuts and increased spending on other priorities.
The Colorado Department of Health Care Policy and Financing reported that as of June 22, 21,261 undocumented individuals had Medicaid coverage in the state, with the majority being children. The bill in Congress also aims to narrow the group of immigrants with legal status who can receive tax credits to purchase health insurance on the federal marketplace.
Three out of four Republican members of Congress from Colorado signed a letter urging Governor Polis to end coverage for undocumented individuals, citing concerns about the impact on those who need Medicaid the most. However, advocates argue that providing coverage to undocumented individuals is crucial for preventive care and community health.
Dr. P.J. Parmar, who runs a clinic primarily treating refugees, expresses concern about potential budget cuts to Medicaid, which could impact coverage for refugees who qualify without a five-year waiting period. While the future of Medicaid coverage for undocumented individuals in Colorado remains uncertain, organizations like Tepeyac Community Health Center are working to ensure access to care for low-income communities.
