May 2026 Legislative Update

Colorado’s 2026 legislative session concluded May 13th, with more than 700 bills introduced this year. The final weeks of session included significant budget negotiations and rapid movement of healthcare-related legislation at the Capitol.

Several major themes emerged this session that are particularly relevant to occupational therapy practitioners and the patients we serve, including:

• Healthcare workforce sustainability
• Access to care
• Affordability of healthcare services
• State budget pressures and Medicaid funding reductions
• Recruitment and retention challenges across healthcare settings

Legislators and state agencies continued to focus on workforce-related initiatives, including childcare access and broader strategies aimed at improving healthcare recruitment and retention statewide. These conversations remain highly relevant to occupational therapy as healthcare systems continue navigating staffing shortages and increasing patient needs.

FY27 Colorado Budget & Medicaid Impacts

The FY27 Colorado state budget has now been signed into law and includes approximately $270 million in Medicaid-related reductions. Current implementation plans include an estimated 2% provider reimbursement reduction for many Medicaid providers beginning July 1, 2026. Some maternal and pediatric specialty services were exempted from these reductions. Note that these are in addition to the 2% cuts that rolled out by executive order in April.

OTAC is continuing to monitor implementation details and potential downstream impacts on:

• Rehabilitation access
• Provider and clinic stability
• Healthcare workforce sustainability
• Access to OT services across care settings and communities

We are also monitoring final bill signings and potential gubernatorial vetoes that may further shape implementation priorities in the coming months.

Looking Ahead

As Colorado continues addressing healthcare workforce and access challenges, OTAC sees strong opportunities for occupational therapy to increase visibility and advocacy efforts in key policy areas, including:

• Workforce resilience and retention
• Rehabilitation access
• Aging and chronic disease management
• Behavioral and mental health
• Rural healthcare access
• Community-based and preventative care

OTAC will continue collaborating with legislators, stakeholders, and advocacy partners to ensure occupational therapy perspectives remain represented in state policy discussions.

We are grateful to our OTAC members, legislative committee volunteers, and lobbyists for their continued advocacy efforts on behalf of occupational therapy practitioners and the patients we serve across Colorado.

To stay informed about OTAC advocacy efforts and legislative updates, please visit OTAC Advocacy Updates and consider becoming involved with the OTAC Legislative Committee.

End-of-Session Legislative Report from our lobbyists - Steve Balcerovich & Tim Coleman

Colorado Medicaid Rate Cuts & How to Take Action!

We want to make sure you are aware of a recent decrease in Medicaid reimbursement rates affecting all providers, effective April 1. Like many of you and other professional organizations across the state, we only became aware of this change this week. We recognize the immediate strain this places on your practice, your team, and the people you serve, and we share your frustration.

What you need to know

• Updated provider rates are available here.

• Search specific CPT code reimbursement rates here.

• Review accepted CPT codes in the OT billing manual here.

• Additional details are in the Department of Health Care Policy & Financing (HCPF)'s April bulletin (see page 7) here.

Take action now!
Your voice is critical. Here are specific steps you can take today:

1. Contact the Governor’s Office
   Share how these cuts are affecting your patients, services, and practice here.

2. Reach out to HCPF
   Request clearer and more timely communication about reimbursement changes:

   • Mailing address: Colorado Department of Health Care Policy & Financing, 303 E. 17th Avenue, Suite 1100, Denver, CO 80203

   • Phone: (303) 866-2993

3. Strengthen our collective advocacy

   • Join the OTAC legislative committee by emailing info@otacco.org

   • Maintain or renew your OTAC membership.

4. Engage in upcoming elections
   Share your concerns with candidates for Colorado governor ahead of the November 3, 2026 election, and confirm your voter registration here.

Although these changes are already in effect through an amendment to an executive order, continued advocacy can influence future decisions and improve communication moving forward.

We know this situation is discouraging. You are not alone, and your voice truly makes a difference. The more providers who speak up, the stronger our collective impact will be.

Thank you for the care you provide every day and for standing together during this time.

Sincerely,
Molly Hahn-Floyd
OTAC President

Amanda Hoffman
OTAC Public Policy Chair