Unfunded wage mandates threaten Medicaid services
Colorado’s Medicaid services depend on state funding, which each year lags state and local minimum wage increases, threatening access to critical services. Agencies that provide Medicaid services are working for the state – they need timely and adequate funding support from the state to offset minimum wage increases.
The last time minimum wage increases took place in Colorado, home care providers had to wait six months before they saw a corresponding increase in Medicaid rates from the state. This unfunded mandate places an untenable financial strain on agencies, affecting their workers and the patients who rely on them for care.
Colorado has the sixth-highest minimum wage of any state in the country.
There is no mechanism for Colorado’s Medicaid rates to adjust for minimum wage increases.
In many cases, particularly in rural areas of the state, home care agencies that provide home care services are small businesses.
When an agency can’t make their budget work, they go out of business.
An Untenable Situation
“The Colorado Legislature needs to adopt a proactive rate setting process that accounts for wage mandates for the home care industry. If it fails to do so, it risks a great deal for Colorado’s Medicaid population and Colorado taxpayers. It risks losing vital home care services in Colorado”
Why It Matters
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Threatens services
When state reimbursements lag minimum wage, it puts Medicaid services at risk.
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Reduces access
When high administrative costs and low reimbursement rates drive providers away from Medicaid, it reduces patient access to care.
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Strains providers
Colorado providers can’t stay open if compensation does not reflect minimum wage mandates.
Resources & Updates
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Colorado’s minimum wage requirements
Learn about Colorado's state and local minimum wages and explore labor market data.
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Dire Impact Of Home Health Agency Closures
Home Health Care News: Small- to medium-sized providers are shuttering due to staffing constraints & costs.
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Opinion | Protect home care from misery of unfunded mandate
Colorado Politics: Don Knox explains why the state must act now.