Medicaid Budget News: What It Really Means for Caregivers Right Now
If you’ve seen headlines about a big federal budget cut to Medicaid, you’re not alone. There’s been a lot of noise, but here’s the truth: no cuts to Medicaid have been made yet. What passed in the U.S. House in February was a budget resolution — think of it as a wishlist, not a final decision.
We know it’s hard to hear talk about “billions in cuts” without wondering what it means for your job, your paycheck, and the people you care for. That’s why we want to break down what’s actually happening — and what’s not — in plain terms that matter to you.
What’s Not True
Some news reports are saying Medicaid has already been cut. That’s false. Right now, we’re in the early stages of budget talk. The House proposed $880 billion in cuts. The Senate’s proposal? Just $4 billion. They’re miles apart and won’t even start negotiating final details until summer.
This process can go all the way until September 30, 2025 and anything can change along the way.
What’s Actually on the Table
There are a few proposals floating around that could eventually affect Medicaid. Here’s what we’re watching and how it might (or might not) affect you:
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Work Requirements: High chance of discussion, but doesn’t apply to Home and Community-Based Services (HCBS). No impact to you or the people you support.
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Eliminating Enhanced Match for Expansion Population: High likelihood, but still no real impact to your day-to-day caregiving.
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Provider Taxes, Per Capita Caps, FMAP changes: These could reduce funding to states, but nothing has been decided. We’re keeping a close eye because if they move forward, Colorado could lose some flexibility in how Medicaid dollars are spent — and that could ripple down to rate cuts or service changes. But we’re not there yet.
Closer to Home in Colorado
Colorado’s economy is still relatively strong, but the state is projecting a $1.16 billion gap in next year’s budget. Medicaid is a big part of the challenge. Just 4.7% of people on Medicaid in Colorado — those who rely on long-term services and supports — account for 42% of the cost.
That means lawmakers are looking hard at where they spend Medicaid dollars. There are real talks about rate cuts. But here’s where it gets better: HCPF is fighting to protect HCBS rates more than other Medicaid services. They know how essential you are.
Why Advocacy Matters
We know your work isn’t easy. You show up and you do this work because you care. Conversations happening at the Capitol can feel far away, but they can have a very real effect on your paycheck, your benefits, your clients, and your ability to keep doing this life-changing work.
We’re watching closely so you don’t have to. We’ll keep speaking up to protect your loved ones and make sure decision-makers understand that caregivers like you are the backbone of the system.
If you ever want to be more involved, reach out to your state and federal representative, your voice carries weight, especially when it comes from the heart.
Looking Ahead
As federal discussions continue in 2025, we’ll stay focused on protecting the services that support caregivers and families.
Thank you for everything you do to care for your loved ones and strengthen our community.
