March 2025

CBHC Newsroom: March 2025

5 Key Facts About Medicaid Coverage for Adults with Mental Illness – And Why Proposed Cuts Matter

Medicaid stands as the largest payer for mental health services in the U.S., and its role in substance use disorder treatment is expanding. However, Congress is actively considering proposals to drastically cut Medicaid spending, which would have devastating consequences for adults living with mental illness. With an estimated 52 million nonelderly adults nationwide living with mental illness, and Medicaid covering nearly one in three (29%), or about 15 million of them, the stakes couldn’t be higher. 

Close to 1.2 million Coloradans are on Medicaid. For those with mental illness and substance use disorder, Colorado’s Medicaid program provides significantly better benefits than private insurance. Proposed changes like per capita caps, reduced funding for adults without dependent children (more than 377,000 Colorado Medicaid members are in this category), and work requirements threaten to dismantle this critical safety net.

Let’s delve into 5 key facts from KFF that illustrate the importance of Medicaid for Coloradans.

1. Medicaid covers more nonelderly adults with mental illness than private insurance. More than one in three (35%) nonelderly adults on Medicaid have a mental illness, significantly higher than those with private insurance (24%) or no coverage (24%). In fact, 10% of Medicaid enrollees have a serious mental illness, which often involves severe symptoms and functional
impairments. Data from the 2023 National Survey on Drug Use and Health (NSDUH) shows that Colorado has a 33% rate of any mental illness among Medicaid adults, and 12% of serious mental illness among Medicaid adults. Any cuts to federal Medicaid funding would disproportionately impact these Coloradans, potentially leading to increased hospitalizations, homelessness, and a greater burden on emergency services and other public resources.

2. Medicaid enrollees receive mental health treatment at higher rates than those with private insurance coverage. KFF analysis on the 2023 NSDUH demonstrates that 59% of nonelderly Medicaid enrollees with any mental illness receive treatment, compared to 55% of privately insured and 37% of uninsured. Medicaid provides particularly strong access for those with moderate and serious mental illness, with higher treatment rates than private insurance.
 
3. Medicaid covers a wide range of diagnoses and treatments. Frequently diagnosed mental illness for Medicaid enrollees include anxiety and depressive disorders, with over 5 million enrollees diagnosed with anxiety alone. More than two million enrollees are diagnosed with serious mental illnesses like bipolar disorder and schizophrenia. These figures are based on claims data, which likely underrepresent the true prevalence of mental illness. In addition, Medicaid covers a broader range of essential services – therapy, counseling, medication management, and inpatient/outpatient care – than most private insurance.

4. Medicaid enrollees with mental illness have higher rates of chronic conditions and substance use disorders. Nationwide, two-thirds of enrollees with any mental illness have at least one other chronic condition, and 76% of those with serious mental illness do. Substance use disorder is a common co-occurring condition, affecting one in four Medicaid enrollees with any mental illness and 40% of those with serous mental illness. Reductions to funding will create additional barriers to care for individuals with mental illness, especially those with co-occurring chronic conditions.

5. Average annual Medicaid spending for enrollees with mental illness is twice that of those without. Due to the complex needs of this population, spending for those with serious mental illness averages $21,000 per year nationally, three times higher than those without a mental health diagnosis. This higher spending is likely due to the increased prevalence of chronic conditions and the need for more intensive treatment. Medicaid spending for adults with any mental illness accounts for one third of the total Medicaid spending for non-elderly adults enrolled only in Medicaid. Per capita caps, which limit the amount spent per person without considering the individual’s needs for care, remove the flexibility necessary to address the fluctuating and often intensive needs of individuals with mental illness. These caps would fail to account for the complexities of mental health care, where costs can vary significantly based on individual needs and the severity of illness. This would lead to a system that is unable to adequately respond to the needs of its most vulnerable beneficiaries.
In addition to the impact of potential cuts on individuals’ access to care, it’s also important to recognize the fallacies behind some of the proposals. For example, KFF data also demonstrates that 92% of Medicaid enrollees nationwide are already working. It’s not clear what new “work requirements” would look like, but they will pose an additional hurdle to individuals applying for coverage.
Another sobering proposal is eliminating or severely reducing provider fees that enable states to draw down additional federal funds. Colorado’s hospital provider fee covers the state’s cost of Medicaid coverage for adults without dependent children. If Congress eliminates that federal match, the state – facing its own $1 billion-plus shortfall – cannot compensate. The 377,000 Coloradans who rely on this Medicaid coverage for their physical and behavioral health needs will likely lose that care.

These statistics clearly demonstrate Medicaid’s vital role in providing access to behavioral health care for millions of adults, including those in Colorado. Proposed cuts would have devastating consequences, leading to reduced access, increased health disparities, and worsened outcomes for adults with any mental illness but especially those with serious mental illness and co-occurring chronic conditions. We encourage you to urge Colorado’s congressional delegation to preserve access to care through Medicaid for these vulnerable individuals: bit.ly/medicaid-protection 


We are now accepting proposals for the 2025 CBHC Annual Behavioral Health Training Conference, to be held September 17-20, 2025, in Breckenridge, CO.
 

This year’s theme is “Rooted in Resilience: Transforming Together.”

We invite you to submit session proposals on topics including:

  • Clinical care and substance abuse programs
  • Board/management strategies and public policy
  • Business practices like telehealth and cybersecurity
  • Social determinants such as housing, food insecurity, and public health
  • And much more!

Submission Deadline: April 15, 2025
Notification: May 1, 2025

For submission details and to submit your proposal, visit the submission page.

Don’t miss this opportunity to be part of a transformative event!

For any questions, contact Brittany Langevin at blangevin@cbhc.org.

For more details about the 2025 CBHC Conference, please visit cbhc.org/conference. 

 

State Budget & Legislative Updates

The $1 billion-plus budget shortfall is dominating the legislative session, leading to fewer bills and a strong push to minimize the fiscal impacts of proposed legislation. With the March budget forecast essentially unchanged from January, the deficit remains a significant challenge. In this climate, CBHC is prioritizing the preservation of existing behavioral health funding to ensure our members can continue serving vulnerable populations. Adding to the challenge are potential federal cuts, which would further strain the state budget, including Medicaid, making it exceptionally difficult for legislators to fulfill their balanced budget mandate.

As the Behavioral Health Administration (BHA) continues to implement the system created by HB22-1278 (which established the BHA) and related bills, legislators are allowing that to play out without introducing significant new behavioral health legislation. However, CBHC continues to engage on a number of bills that have the potential to affect the financing of and access to mental health and substance use treatment. Here are the two on which we’ve been most engaged:

  • SB25-042 (Behavioral Health Crisis Response Recommendations): A key feature of this bill is a mechanism to create an inventory of existing alternative crisis response programs around the state and assess the reimbursement challenges that impede the expansion of such programs. Such data is essential for determining how to support the creation of more co-response programs, crisis stabilization units and other important interventions. It has passed both chambers and will soon be on the Governor’s desk. 
  • HB25-1002 (Medical Necessity Determination Insurance Coverage): This bill mandates health insurance plans to provide mental health and substance use disorder coverage comparable to physical health coverage. It requires that health benefit plans provide medically necessary treatment for behavioral, mental health, and substance use disorder benefits, consistent with specified criteria. CBHC testified in support of this bill, and as of this writing, it is on its way to the Governor’s desk.
  • HB25-1174 (Reimbursement Requirements for Health Insurers): This bill sets a ceiling for hospital reimbursements from small group health plans and the state employee health plan and allocates the savings to safety net providers and reducing premiums for state employees. Proponents reached out to CBHC to ensure that safety net behavioral health providers would be included; CBHC worked with them to amend the bill so that 20% of the realized cost savings are dedicated to comprehensive behavioral health safety net providers. This bill is significant, both for the crucial funding it provides and for formally recognizing behavioral health providers as essential components of the healthcare safety net. At this writing, it is awaiting second reading vote in the House. 

You can follow all the legislation we’re tracking here.

Honoring Those Who Make a Difference

March is Social Work Month, a time to celebrate the dedication and impact of social workers in our communities. This year’s theme, “Empowering Social Workers: Inspiring Change, Advocating for All,” highlights their vital role in mental health, crisis intervention, and advocacy.

At CBHC, we recognize and appreciate the social workers who work tirelessly to support individuals and families. Thank you for your commitment to building stronger, healthier communities—you are the heart of behavioral health care!

Cost-Covered Mental Health First Aid (MHFA) Instructor Trainings

The Colorado Behavioral Healthcare Council (CBHC), through the Mental Health First Aid Colorado program, is excited to announce the upcoming cost-covered virtual MHFA Instructor Trainings. These sessions are designed to equip individuals with the skills to teach Youth Mental Health First Aid (YMHFA) and Adult Mental Health First Aid (MHFA).

We will be hosting four instructor trainings through April 2025, two for Youth MHFA and two for Adult MHFA. These trainings are open to individuals interested in becoming certified instructors and leading these important programs in their communities.

Upcoming Training Dates:

These trainings are an excellent opportunity for organizations and individuals to expand their capacity to address mental health needs across Colorado. Applications are open now—please share the details with your teams and networks!

If you have any questions, feel free to reach out to Betsy Molgano at bmolgano@cbhc.org.

We look forward to seeing you there!
Axis Health System
Cuts to Medicaid will impact services for all – Proposed Medicaid cuts in the federal budget are causing concern among healthcare providers in Southwest Colorado, including Mercy Hospital and Axis Health System. These cuts could significantly reduce revenues and impact services for both Medicaid enrollees and the broader community. While Republicans claim no cuts to benefits, they propose reductions that may affect Medicaid, which covers a large portion of the region’s population. Providers fear this could lead to service eliminations, especially at a time when demand for local care is rising. For more details, you can read the full article here.

Clinica Family Health & Wellness
Annual Boulder Strong Day of Remembrance – The City of Boulder recently held its annual Day of Remembrance on March 22, 2025, to honor the 10 victims, including a Boulder police officer, who lost their lives in the tragic mass shooting on March 22, 2021. The event took place at the Museum of Boulder, offering a time for the community to come together in remembrance and support. The Boulder Strong Resource Center continues to offer healing and resources for those impacted by the tragedy. You can learn more about the event here.

Clinica Family Health & Wellness
More than 400,000 Coloradans could lose Medicaid with proposed Republican bill – On March 19, 2025, Governor Jared Polis and Representative Joe Neguse participated in the “Medicaid Day of Action” at Clinica Family Health in Lafayette to address concerns over a proposed Republican spending bill. The bill, which aims to reduce the deficit by $880 billion, could lead to over 400,000 Coloradans losing Medicaid coverage. This would have a significant impact on vulnerable populations who rely on these services. The event was part of a national campaign urging Congress to protect Medicaid and preserve funding for essential healthcare services. You can learn more about the event here.

Aurora Mental Health and Recovery
Hickenlooper collects stories at Aurora round-table to persuade Republicans to halt cuts to VA, veterans – At a roundtable discussion in Aurora, Colorado, veterans, VA employees, and Senator John Hickenlooper expressed concern over recent cuts and layoffs in the Department of Veterans Affairs (VA) under the Trump administration. These cuts, which have resulted in thousands of layoffs, are particularly distressing for those directly impacted, as they fear for their jobs and the quality of care veterans will receive. Hickenlooper, visibly frustrated by the situation, shared how these budget cuts will severely impact veterans, citing insufficient funding for the VA even before these reductions. Local veterans shared personal stories about how the layoffs have affected them, highlighting how these changes not only harm the morale of employees but also increase wait times for veterans needing care. Additionally, these cuts are straining community resources, with some programs losing grant funding. Hickenlooper is working to bring these stories to Republican senators to help influence changes. For more details, visit the full article here.

Clinica Family Health & Wellness
Neguse and Polis tour Clinica – On March 18, 2025, Rep. Joe Neguse and Governor Jared Polis toured Clinica Family Health to highlight concerns over proposed Medicaid cuts. The cuts, if passed, could affect approximately 90,000 Coloradans and potentially shift healthcare costs to the public. Clinica staff expressed concerns about losing coverage for vulnerable populations, including the homeless, and the broader impact on access to care. Both Polis and Neguse emphasized the need to preserve Medicaid’s critical role in supporting healthcare for low-income individuals, with an estimated $1.12 billion loss in the 2nd District alone. You can learn more about the event here.

Axis Health System
Cuts to Medicaid will impact services for all, Southwest Colorado medical providers say – Proposed Medicaid cuts are expected to have a significant impact on healthcare services across Southwest Colorado. Local medical providers warn that reductions could lead to limited access to care for vulnerable populations, including low-income and elderly residents. The cuts would affect the funding for essential services, and medical facilities, including rural clinics, may face challenges in maintaining care for patients who rely on Medicaid. Providers urge policymakers to reconsider the proposed changes. Read more here.

Jefferson Center for Mental Health
Addressing Homelessness in Wheat Ridge: Community Efforts and Challenges – Homelessness is rising in Jefferson County, with 925 individuals reported in 2024. In response, Wheat Ridge’s Homeless Navigation Program helps connect people to housing and essential services, while police distribute cold-weather supply bags with necessities and resource information. Despite these efforts, the affordable housing crisis continues to drive homelessness, and local organizations remain committed to finding long-term solutions. You can learn more about the event here.

AllHealth Network
Enhancing Community Safety Through Targeted Violence Prevention Training – In an effort to bolster community safety, specialized training programs have been introduced to help individuals recognize signs of potential targeted violence. These trainings educate participants on identifying concerning behaviors and understanding appropriate intervention strategies. The goal is early detection and proactive measures to prevent violent incidents. Such initiatives have proven effective in raising awareness and fostering safer communities. You can learn more about the event here.

Community Reach Center
Tickets available for annual Community Reach volunteer awards banquet – The Ciancio Awards, hosted by Community Reach Center, will take place on April 23, 2025, honoring local community volunteers who have made significant contributions. The awards celebrate those dedicated to enhancing mental health, wellness, and social impact within the community. Tickets for the annual event are now on sale. You can learn more about the event here.

Axis Health System
Axis Health System provides mental health services as a partial alternative to West Springs – Axis Health is providing an alternative to West Springs Hospital by offering mental health services in a community-based setting. This model focuses on supporting individuals in crisis outside traditional hospital care, aiming to deliver more integrated and responsive mental health support to the community. For further details, you can read the full article here.

WellPower
Three mental health steps Colorado federal workers can take after unemployment – Unemployment can take a toll on mental health, but there are steps to cope. Dr. Casey Wolf from WellPower recommends three key strategies for federal workers in Colorado: first, acknowledge and grieve the loss of not only a job but also a sense of stability. Second, it’s important to stay connected by maintaining supportive relationships with friends, family, and colleagues. Finally, seeking professional support through counseling or mental health services can help individuals navigate emotional challenges. These steps can help mitigate the impact of unemployment on mental well-being. For further details, you can read the full article here.

Mind Springs Health, Centennial Mental Health Center, SummitStone Health Partners, & Jefferson Center for Mental Health
Nearly 500 behavioral health workers in Colorado have been laid off over the past three months – In early 2025, three behavioral health hospitals in Colorado—West Springs Hospital in Grand Junction, West Pines in Wheat Ridge, and Johnstown Heights Behavioral Health—closed, resulting in nearly 500 layoffs among nurses, therapists, and support staff. These closures have raised concerns about access to mental health care, particularly in underserved regions. The closures are partly due to financial challenges, including low patient occupancy and reduced Medicaid reimbursement rates. Advocates warn that these developments could strain Colorado’s mental health safety net, potentially leading to increased demand for services elsewhere. For more details, read the full article here.
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