DENVER, Colo. – Following Governor Polis’ remarks urging his support for creating a state government option during his State of the State Address on Wednesday, a new report finds a Colorado state government option could financially impact 78 percent of all Colorado hospitals, totaling $112 million in losses annually, and threaten access to care for Coloradans, especially among racial and ethnic minorities. Over 40 percent of hospitals that could be at higher risk for closure disproportionately serve Black, Latinx, and Native American residents.

The report, conducted by FTI Consulting for Colorado’s Health Care Future, found that while the vast majority of Colorado hospitals could be negatively impacted by the state government option, a new state government-controlled health insurance system could exacerbate health care disparities during this critical time.

Key Findings:

• During this critical time, a state government option could financially impact 78 percent of all Colorado hospitals.
  
  
• Today, racial and ethnic minorities in Colorado comprise one-third of the state’s total population, yet 40 percent of Colorado hospitals that could be at higher risk for closure under the state government option serve these communities.
  
  
• Hospitals fill a critical gap in care for Black and Hispanic/Latinx Coloradans, many of whom already contend with significant disparities in health status, access, and outcomes, and must rely more heavily on hospital services to meet basic health care needs.
  
  
• Native Americans in rural areas could also see their access to care threatened. This builds on a previous report, which found twenty-three rural hospitals could be at increased risk of closure under the state government option.

Colorado lawmakers, who will now consider creating the state government option, should instead work together to build on and improve what is already working in health care where private coverage, Medicare, and Medicaid work together to expand access to health coverage and care for every Coloradan, rather than starting over with the state government option.