Polis Budget Plan Sparks Bipartisan Pushback Over Medicaid Costs and Pinnacol Gamble

By Marianne Goodland | Colorado Politics

Gov. Jared Polis’ proposed state budget for 2026-27 drew sharp criticism Wednesday from the legislature’s Joint Budget Committee, as lawmakers from both parties criticized plans to slow Medicaid spending growth and to rely on a deal to privatize Pinnacol Assurance.

This quasi-state agency is the state’s largest provider of workers’ compensation insurance.

Polis has already cut $79 million in the 2025-26 budget, primarily for rates paid to Medicaid providers in dental, behavioral health and services to children with disabilities.

The governor’s 2026-27 budget proposes an additional $197.7 million in general fund dollars, or about 5.6%, in the Medicaid program. But the projected growth is at 11.9%, or $631.4 million. He has also brought in a national expert to review Medicaid trends.

Polis told the JBC that Medicaid is the fastest-growing portion of the budget; growth that, he said, isn’t sustainable.

JBC Vice Chair Sen. Jeff Bridges, D-Greenwood Village, said there are only three levers when it comes to Medicaid: reducing who receives benefits, reducing the benefits they receive or reducing what the state pays.

With that in mind, what’s the process for making reductions? he asked.

Polis responded that the first — reducing who receives benefits — is not on the table. “The worst decision” for the health of recipients is to lose coverage, he said.

His administration is looking for better value, he said, which he said results in better health outcomes. High Medicaid spending has not resulted in better health outcomes, wanting to focus on which investments will lead in that direction.

The national expert’s report should be finalized by February.

Most of the committee members were not pleased with the Medicaid proposal.

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