Colorado budget writers put Medicaid caregiver pay cuts on hold
The Colorado General Assembly’s budget decision-makers have put proposed pay cuts on hold for people who care for a family member with a disability who receives Medicaid.
The Joint Budget Committee made the decision after hours of testimony from family caregivers and several advocates.
The Department of Health Care Policy and Financing has been struggling to manage a substantial spike in Medicaid spending, which accounts for about one-third of the state’s budget, even as Colorado faces a $1 billion budget deficit.
Members of the JBC earlier expressed concerns with Gov. Jared Polis’ proposal last November on how to plug that deficit, which included a plan to fund Medicaid below its projected growth.
“This isn’t a trim,” said JBC member Sen. Barbara Kirkmeyer, R-Brighton. “It’s a blow to families who are already fighting to get care. These numbers represent real people.”
“We used to balance the budget on the backs of students. Now, we’re balancing it on the backs of people who rely on Medicaid,” added Rep. Rick Taggart, R-Grand Junction. “This is a crisis of priorities.”
At issue during a JBC meeting last week were two proposals by the Department of Health Care Policy and Financing that it said would reduce Medicaid spending and “caregiver burnout” — a 56-hour weekly cap on paid caregiving hours for family caregivers and a “rate alignment” that would align their pay with that of host home providers. That would result in a pay decrease for most family caregivers.
Late last month, the JBC voted to maintain the current 112-hour weekly cap, but the state agency urged them to reconsider. Several days later, the committee voted to revisit the cut at a later date.
Nicole Villa, who said she provides full-time care to a family member with a disability, argued that family caregivers should be paid more than host homes because, while the latter have multiple staff providing care throughout the day, the former do everything themselves.
“We don’t have a choice,” Villa said. “We are stuck doing this 24/7, and HCPF seems to think that my son’s safety and cleanliness are worth only nine dollars an hour.”
Villa accused the state health agency of “gaslighting” the JBC by telling its members the realignment would save the state money, but, she argued, the opposite is true.
“We are saving the state so much money by doing this ourselves,” she said. “It’s hard, it’s disgusting, and there is no one else who would do this for our adults. It doesn’t get easier.”
Medicaid services have provided Lindy Sally with a home and access to resources that help her daughter, who has a rare genetic condition, thrive in her environment.
“With the changes currently being proposed, our lives would change drastically,” said the single mother of three. “These changes put families like mine at risk of losing their homes that have already been modified to meet our children’s needs. They would force students out of school districts and communities that understand and support their unique care requirements.”
“My child’s needs do not decrease because of funding or hours reduced,” Sally said.
Elizabeth Moran, executive director of the Arc of Colorado, argued that the cuts and realignment are simply cost-shifting measures — not cost-saving ones.
“It does not eliminate the increased need, it pushes people into crisis,” she said, adding that the cuts could result in an increased need for institutional beds that the state won’t be able to accommodate for.
“Why are some of the deepest cuts aimed at people with disabilities, people with low incomes, and those with the fewest choices?” Moran asked. “You have an opportunity to show that ‘Colorado for All’ is more than a slogan. It really reflects our values and our budget.”
Sen. Judy Amabile, D-Boulder, said she had concerns about implementing the cuts, especially after hearing from caregivers that they would rather work uncompensated hours than hire an outside caregiver “because they are the parents.”

