Source: Axios Colorado

January 7, 2025

Health care is a top priority for Colorado lawmakers entering the new year.

Why it matters: Decisions made during the upcoming legislative session could impact Coloradans for years to come.

State of play: Policymakers face tough challenges — including budget constraints, culture wars and political pressures — as they tackle issues straining Colorado’s health care system, according to the Colorado Health Institute’s annual analysis of the 2025 session.

  • Key legislative priorities include protecting vulnerable populations, strengthening the state’s health care safety net and addressing disputes between drugmakers and providers over prescription prices.

Zoom in: Here’s a look at lawmakers’ agenda when they return to the state Capitol on Wednesday:

340B program: The federal drug discount effort will probably take center stage with a proposed bill that would bar drugmakers from limiting the use of the program to certain pharmacies.

  • 340B offers hospitals critical discounts on medications, which hospitals view as a lifeline but drugmakers argue is frequently abused.

Medicaid: Rising costs and uninsured patient rates are straining safety net providers, many of whom face low Medicaid reimbursement rates. Expect significant legislative efforts to address these challenges, policy experts say.

  • A recent Magellan Strategies poll found Colorado voters in alignment, with 78% wanting the state to prioritize solutions for streamlining Medicaid access to ensure eligible residents receive care, while easing pressure on providers.

Gender-affirming care: As Colorado solidifies its status as a haven for gender-affirming care, LGBTQ advocates will push for new legislation to require insurers to cover it.

  • However, insurance mandates can raise costs, creating a dilemma for Gov. Jared Polis, an LGBTQ+ advocate focused on reducing health care expenses.

Provider pain points: Issues such as hospital fees and out-of-network billing will be on the agenda as lawmakers seek to ease burdens on providers and patients.

The bottom line: A nearly $1 billion budget shortfall looms over the Legislature this session, which could put some initiatives on the chopping block.