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Polis Unveils 2026–27 Budget Targeting Medicaid Costs Under TABOR Cap

Lawmakers now face a tight budget year with Medicaid growth outpacing allowable spending.

Overview

  • The plan limits certain benefits and utilization, including a $3,000 annual adult dental cap, added prior authorizations, payment caps, and reduced home‑care hours, with the governor saying no one loses coverage.
  • State general‑fund Medicaid spending would rise by nearly $300 million next fiscal year, roughly half the projected $631 million increase without changes.
  • Polis’ proposal codifies an executive order cutting about $12 million to $15 million this year through reimbursement caps and dental benefit limits.
  • The governor seeks to tie future Medicaid growth to the TABOR formula, a move expected to face resistance as the budget heads to the Joint Budget Committee and then the full legislature.
  • The nearly $51 billion plan, including a $19 billion general fund, boosts K‑12 and public safety, trims 12 of 17 departments, and again pitches privatizing Pinnacol to generate hundreds of millions.