SB25-290 Preserves Access to Essential Safety Net Health Care for Thousands of Coloradans While Protecting Jobs and Infrastructure

DENVER, CO – Today, Governor Polis signed SB25-290 to stabilize Colorado’s health care safety net in the wake of the state’s Medicaid disenrollment crisis. The governor held a signing ceremony at Clinica Family Health and Wellness, a Federally Qualified Health Center and Comprehensive Community Behavioral Health Provider in Lafayette, CO. SB25-290, which was sponsored by Senators Kyle Mullica (D-Thornton) and Barbara Kirkmeyer (R-Weld County) and Representatives Shannon Bird (D-Westminster) and Kyle Brown (D-Louisville), passed the Colorado Senate and House with strong bipartisan support.

SB25-290 establishes a Provider Stabilization Fund consisting of a minimum of $130M from available state revenue, private contributions, and federal matching funds available through Medicaid. Through this new fund, the law preserves access to essential safety net services for thousands of Coloradans, provides immediate financial support to a broad cross-section of safety net health care providers, and protects critical health care jobs and infrastructure in the short term while a comprehensive, longer-term solution can be developed.

“Our health care safety net has been strained over the last five years, and it is at a breaking point today,” said Senator Kyle Mullica. “Coloradans and Colorado communities are struggling. This is a necessary and important step to stabilize the safety net in the short term while we work on longer-term conversations about how we sustainably support our health care system in Colorado.”

“The health of Coloradans is only as strong as the health of the providers who serve them and only as stable as our commitment to fund the health care safety net,” said Senator Barbara Kirkmeyer. “SB25-290 is an innovative short-term solution that provides immediate support and preserves access to an inclusive cross-section of providers who are crucial to the well-being of our communities and economy. It is a critical lifeline that will allow us to build toward sustainable, long-term solutions.”

“Colorado’s hospitals and health systems are grateful to Governor Polis and legislators for their commitment to supporting vitally important health care providers through Senate Bill 25-290,” said Jeff Tieman, president and CEO of Colorado Hospital Association. “This new law establishes a public-private partnership to strengthen our health care system at a critical time. With the rise in uninsured patients and growing uncompensated care, the sustainability of health care access is at risk. We are proud to be part of the ‘Save Our Safety Net Coalition’ and this solution to mitigate that risk and protect access to care across Colorado.”

“This law is a critical lifeline to Colorado’s Community Health Centers and other safety net providers that will allow us to build toward sustainable, long-term solutions,” said Ross Brooks, president and CEO of Colorado Community Health Network. “We have deep appreciation for all the partners that have worked on finding options to address the financial crisis many Community Health Centers are facing. CCHN is proud to be part of the Save Our Safety Net coalition.”

SB25-290 was developed collaboratively by the Save Our Safety Net coalition, a group of health care providers, consumer advocacy groups, and other health care stakeholders – entities that are not always aligned but together recognized the critical need to address Colorado’s Medicaid unwind crisis immediately. The coalition is led by Colorado Behavioral Healthcare Council, Colorado Center on Law and Policy, Colorado Community Health Network, Colorado Cross-Disability Coalition, Colorado Hospital Association, Colorado Safety Net Collaborative, and Healthier Colorado. More than 75 additional organizations endorsed SB25-290 (see supporters list here).

“We are grateful for the partnership among the healthcare safety net organizations and the support from the state legislature to develop and pass a law to implement a Provider Stabilization Fund in response to the unprecedented ‘unwinding’ of Medicaid in Colorado,” said Bebe Kleinman, Colorado Safety Net Collaborative Board Chair and CEO of Doctors Care. “SB25-290 is about keeping access to care alive for people who need it most, as well as preventing bigger costs down the road. It is an important moment of unity, creating a great first step to stabilizing the safety net.”

“I am proud to be a part of the diverse group of stakeholders who have come up with a law that puts a down payment on stabilizing Colorado’s health care safety net,” said Hillary Jorgensen, Co-Executive Director of Colorado Cross Disability Coalition. “We are not always on the same side of issues, and I appreciate how everyone has put aside politics and come together in this time of crisis to ensure that people who rely on Colorado’s safety net providers get the care they need. I also greatly appreciate our sponsors who put a tremendous amount of work into this law and worked across party lines to ensure that we take this important step.”

In 2023 and 2024, an estimated 575,000 Coloradans lost their Medicaid coverage as continuous enrollment under the pandemic ended. The loss of Medicaid coverage has been driving significant increases in the number of uninsured Coloradans seeking health care services. Safety net clinics have experienced 25% to 50% increases in uninsured patients, and there has been a 230% increase in hospital charity care since 2019. This increasing number of uninsured Coloradans is financially unsustainable for the state’s health care safety net – before even taking into account looming federal threats to Medicaid.

“Senate Bill 25-290 provides crucial and timely funding that will help keep clinics going so that Coloradans – whether they have commercial coverage, Medicaid, or no coverage at all – can continue to get the care they need, close to home,” said Lydia McCoy, CEO of Colorado Center on Law and Policy. “Our health as a state, and our economy, depend on the doors of our safety net providers staying open.”

“Safety net behavioral health services have never been fully funded in Colorado,” said Kara Johnson-Hufford, CEO of Colorado Behavioral Healthcare Council. “SB 290 represents a vitally important mechanism for ensuring that community-based providers are able to serve people without insurance who have serious mental health and substance use disorders.”

“While there is still a need for future work on the long-term sustainability of the entire health care safety net, SB25-290 is a common-sense and innovative short-term solution that provides immediate support to an inclusive cross-section of health care providers who are crucial to the well-being of our communities and economy,” said Adriana Hidalgo, Executive Vice President of Healthier Colorado.

According to polling conducted by Magellan Strategies and Keating Research in December 2024, 78% of voters want the state to prioritize investing in solutions to streamline Medicaid access.

Additional information can be found in this factsheet and this companion piece.