Unpacking Colorado's Medicaid Funding Structure

Recent insights into Colorado's Medicaid funding reveal a more nuanced picture than previously reported. According to Heart of the Rockies Regional Medical Center, the state's Medicaid program funding comprises 58% federal dollars and 42% state dollars, contrary to the earlier claim of a 65%-35% split.

This discrepancy arises from the two distinct Medicaid populations in Colorado, each with different federal matching assistance percentages (FMAP). The traditional Medicaid population, which reflects Colorado’s higher per capita income, receives a fixed FMAP of 50%, the lowest among neighboring states. Meanwhile, the Medicaid expansion under the Affordable Care Act garners a substantially higher FMAP of 90% for eligible single adults, significantly impacting coverage levels.