What Federal Medicaid Cuts Could Mean for Rural Colorado’s Mental Health Care
Mental health care in rural Colorado is already under strain. Clinics often serve clients facing complex challenges like depression, addiction, and trauma, all while operating with limited staff and tight budgets. For many, Medicaid is the only way to access care. In some counties, Medicaid supports up to 60 percent of patients and is critical to keeping clinics open, according to a 2017 report from the Colorado Center on Law and Policy.
Chris Lindley, Chief Population Health Officer at Vail Health, called Medicaid “by far the best service offering for behavioral health.” He added, “We would love if commercial insurance covered the same services that Medicaid covers, because it’s better care, it’s more comprehensive care, and it’s fairer payment.”
A Republican-backed federal budget plan called the “One Big Beautiful Bill” would cut Medicaid funding by over $600 million in Colorado. A study by the University of North Carolina, commissioned by Senate Democrats, warns these cuts could lead to the closure of 338 rural hospitals nationwide, including six in Colorado. The University of North Carolina study identified six rural Colorado hospitals at risk of closure due to Medicaid cuts: Delta Health Hospital in Delta; San Luis Valley Health Conejos County Hospital in La Jara; Grand River Health in Rifle; Prowers Medical Center in Lamar; Southwest Memorial Hospital in Cortez; and Arkansas Valley Regional Medical Center in La Junta.
