Colorado Access drops Medicaid program

Colorado's largest Medicaid managed-care plan, Colorado Access, won't renew a Medicaid contract that expires August 31. The plan covers medical care for 65,000 low-income enrollees. The decision was made after the state told Colorado Access it was facing a 15 percent drop--about $1.2 million per month--in its reimbursement. "We could not in good conscience ask providers, who are already underpaid, to take a 15 percent decrease," said CEO Don Hall in an interview with The Denver Business Journal. Colorado Access has lost about $20 million over the last two years due to underpayments in the Medicaid program. The nonprofit health plan is largely owned by providers: It was founded in 1994 by Children's Hospital in Denver, Colorado Community Managed Care Network, Denver Health and University of Colorado Hospital/University Physicians. As a result of declining the Medicaid contract, Colorado Access will have to eliminate more than half of its 250 employees. It still holds a contract for behavioral health that serves about 100,000 enrollees.

- see the The Denver Business Journal report