07/08/10 – Colorado’s Safety Net Health Care Programs at Risk

by Cody Belzley

Vice President, Public Affairs, Colorado Children's Campaign
Cody Belzley, Vice President, Public Affairs, Colorado Children’s Campaign
Over the last month, Congress has been debating whether to continue providing fiscal relief to families and states struggling with the significant effects of the global recession. The fight over the American Jobs and Closing Tax Loopholes Act, also known as the "Extenders Bill," has become highly partisan and tense as the 2010 election draws close and states struggle with growing gaps in their budgets. Putting aside political and philosophical disagreements about spending vs. debt, Congress' decision whether to act on this will have significant impacts for Colorado's budget, health care system, children and families.

Here is the background on the issue: Included in the original bill was a six-month extension of enhanced federal Medicaid match rate, known as FMAP. This extension would aid states in their efforts to recover from the recession as Medicaid caseloads continue to grow and state revenues continue to decline. However, the House dropped the FMAP extension based on it further increasing the federal deficit, and the Senate's efforts to bring back the FMAP extension failed.

Subsequently, a bi-partisan group of governors, including Colorado Governor Bill Ritter, Jr., came together to call on Congress to extend FMAP. They noted that states are on the front line in serving a growing number of people who are uninsured while also working to balance their budgets, as required by law.

Over the past two years, Colorado has cut spending and closed shortfalls of $3.5 billion. Even with an FMAP extension, Colorado faces another shortfall of more than $60 million for the fiscal year that began July 1. If FMAP is not extended, that shortfall will grow to nearly $272 million. This means that Colorado will have to make additional cuts in education and health care, undermining services for children and families for many years, and undermining Colorado's ability to recover from the recession.

 

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