DENVER — Colorado mental health centers are trying to adjust to a massive loss of funds following the expiration of American Rescue Act funds. The drop in Medicaid funding led to a stark decline in enrollment, leaving many Coloradans uninsured.
According to state data, 1.8 million people were enrolled in Medicaid during the pandemic. Following the re-evaluation of eligibility standards, the state believed that around 300,000 Coloradans would lose their enrollment. However, more than 600,000 Coloradans were purged from the system.
The change in eligibility standards leading to coverage loss has been called Medicaid "unwind." The majority of those who lost their coverage exceeded the Medicaid income limit. The annual household income for a single person in Colorado to qualify for Medicaid must be below $20,030 and $41,496 for a family of four.
"We started hearing stories from people that we serve that were losing Medicaid and struggling to address their health care needs," said Dr. Kiara Kuenzler, president of Jefferson Center, a mental health facility.
Due to the unwind, the center had to make significant cuts. Jefferson Center announced last month that it would be laying off 25 employees, mostly in administrative and clinical positions.
"At a time when behavioral health is needed more than ever before, it's devastating to see the impact across Colorado," said Kuenzler.
Jefferson Center now has over 6,000 clients without insurance, and they aren't alone.
WellPower, a Denver mental health group, had to cut more than 100 jobs. Additionally, the group eliminated its virtual therapy program and stopped leasing the Garfield House, an apartment complex that helped patients in need of housing. WellPower President Dr. Carl Clark said the virtual therapy program assisted 600 people.
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"We're among the top 10 states in the country where people lost Medicaid," said Clark. "That resulted in a $6 million decrease in our revenue."
Both WellPower and Jefferson Center are trying to avoid a massive deficit this year.
In addition to the decrease in Medicaid funding, the health centers also lost local government grants and investments.
Prior to the cuts, WellPower's annual budget was around $150 million, which has now dropped to $144 million.
“We were expecting the drop off, but we weren't expecting it to be this big," said Clark.
Both organizations argue that state, city, and federal leaders need to re-evaluate funding mechanisms for mental health groups. Without changes, they fear the industry could face major setbacks.
"This really is a crossroads for behavioral health," said Kuenzler.
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