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46% of Medicaid Resources in Colorado Serve People with Disabilities

REPORT PRESENTED BY KFF

Newsroom El Comercio de Colorado

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Medicaid plays a fundamental role in Colorado’s healthcare system, according to data presented by KFF. Currently, more than 1.14 million residents, including children, adults, and seniors, are enrolled in this jointly state and federally funded medical assistance program. The coverage includes basic healthcare, long-term care, specialized services, and support for people with disabilities.

The demographic profile of beneficiaries shows that three out of eight enrollees are minors, and approximately one out of seven lives in rural areas. Additionally, one out of nine has three or more chronic health conditions. Contrary to certain perceptions, 75% of adults receiving Medicaid are employed, either full- or part-time.

Districts 3 and 8 Have Highest Medicaid Dependence

Since the expansion of the program in the state, about 350,000 additional adults have gained access to healthcare coverage. Medicaid penetration varies by congressional district. The districts with the highest Medicaid dependence are Districts 3 and 8, where nearly 27% of the population receive its benefits. The program serves as a safety net for thousands of working families and vulnerable individuals.

In terms of funding, Colorado’s annual Medicaid spending reaches $13 billion, with 64% contributed by the federal government. The largest spending categories include acute medical care (54%), long-term care (28%), and managed care (14%). Notably, seniors and people with disabilities account for 46% of total program spending.

Care for Individuals with Complex Needs

Another important group within Medicaid is the dually eligible population, meaning those covered by both Medicare and Medicaid. In 2025, over 128,000 Colorado residents fall into this category. Of these, 71% receive full Medicaid benefits, while the remaining 29% receive partial benefits. This group represents only 9% of the program’s beneficiaries but accounts for 25% of total spending.

These figures reflect the high costs associated with caring for people with complex medical needs. On average, Medicaid spends $21,023 annually for a fully covered dually eligible individual, while Medicare spends approximately $19,940 for the same person.

Average Annual Spending

The attached graphs provide a clearer visual of these data. The first chart, a pie graph, shows the distribution of dually eligible beneficiaries: 71% with full benefits and 29% with partial benefits. The second chart, a vertical bar graph, details the average annual spending per person by coverage type, distinguishing between Medicare and Medicaid programs.

Finally, the third chart, a horizontal bar graph, illustrates how dually eligible beneficiaries, although representing a smaller portion of the covered population, account for a disproportionate share of total spending in both Medicare and Medicaid. These data demonstrate that Medicaid is not only a key tool for expanding healthcare access but also a critical component in managing public healthcare spending.

46% of Medicaid Resources in Colorado Serve People with Disabilities

The data presented by KFF underscore that the sustainability of Medicaid is essential to ensuring healthcare access for Colorado’s most vulnerable populations.