July 10th, 2025 – On July 4th, President Trump signed the One Big Beautiful Bill Act (OBBBA) into law. The new law cuts $1 trillion in healthcare spending over the next 10 years.
The new law makes substantial cuts to Medicaid, adding new eligibility requirements and shifts responsibility for many costs from federal to state governments.
OBBBA will have a broad and lasting impact on health insurance in Colorado.
The Kaiser Family Foundation (KFF) estimates 40,000 Coloradans could lose coverage when the enhanced ACA premium tax credits expire at the end of 2025, as scheduled. The tax credit enhancements were brought to life in 2021 as part of the American Rescue Plan Act and then were extended through 2025 by the Inflation Reduction Act.
The loss of federal enhanced premium tax credits will substantially decrease subsidies for many Colorado households. Depending on income and size of household, some Coloradans who had the enhanced premium tax credits may see their premiums as much as double in 2026.
Additionally, in order to receive the reduced premium tax credits, the new law requires verification of:
- Household income and family size
- Health coverage status or eligibility for coverage
- Place of residence
- If the individual is “eligible alien”
Previously, KFF estimated 150,000 people in Colorado will become uninsured with the passage of the new law, mainly due to the loss of Medicaid eligibility.
For the remainder of this fiscal year, which began July 1, Colorado officials are projecting a loss of between $500 million and $800 million, Governor Polis’ office told the Denver Post on Tuesday.
According to KFF, federal spending on Medicaid in Colorado will likely drop somewhere between $11 billion and $18 billion over 10 years.
