Medicaid, Policy & Advocacy: What Families Should Know

Medicaid and public policy decisions shape the services, supports, and opportunities available to people with disabilities, their families, and our communities.

Imagine! is committed to helping our community understand important policy developments, navigate changes that may affect services, and stay connected to opportunities for advocacy.

This page brings together key Medicaid and policy updates, information about changes affecting services, Imagine!’s advocacy priorities, and links to trusted resources where you can learn more.


Colorado continues to evaluate changes to Medicaid funding, services, and long-term sustainability. Two statewide efforts are especially important to follow.

Colorado Department of Health Care Policy & Financing (HCPF)

HCPF oversees Colorado’s Medicaid program and is leading much of the direct policy work to address funding challenges and the long-term sustainability of services. This includes evaluating and implementing changes to Medicaid benefits, service limits, eligibility, reimbursement, and long-term services and supports (LTSS).

These decisions can directly affect how services are authorized, delivered, and funded across Colorado.

For the latest information, including proposed changes, financial reports, public notices, and opportunities to provide input, visit theMedicaid Sustainability & LTSS page.


Colorado’s Commission on Medicaid

The Commission on Medicaid is examining the long-term sustainability of Colorado’s Medicaid program, including funding, program operations, and opportunities for improvement. Its work includes reviewing policy options and developing recommendations for state leaders.

The Commission’s materials, meetings, and recommendations offer an opportunity to understand the policy discussions shaping Medicaid’s future.

Follow the Commission’s meetings, agendas, and materials: Colorado Medicaid Commission Meetings & Materials

HCPF has clarified that requesting a non-residential service plan revision during the year will not, by itself, trigger a Post-Eligibility Treatment of Income (PETI) assessment.

This is a change from information previously shared during Imagine!’s informational sessions, when we understood that any midyear Prior Authorization Request (PAR) changes could trigger a PETI assessment.

Other circumstances may still require a PETI assessment.

Imagine! has created a plain-language PETI overview to help explain how PETI works, who may be affected, and what to expect during the assessment process. Questions about a specific PETI assessment or payment should be directed to the person’s Case Management Agency.

Learn more: Click here to read our PETI overview | Review information from our August informational session: Click here to see the slide deck


Broomfield Ballot Issue 1A: Supporting Housing

This measure would increase Broomfield’s lodging tax on hotels, motels, and short-term rentals, generating additional revenue to help address local housing needs. Imagine! supports this approach to strengthening housing opportunities in our community.

Learn more about Broomfield 1A

Colorado Amendment 87: Graduated Income Tax

Amendment 87 would replace Colorado’s flat income tax with a graduated system, lowering taxes on lower incomes and increasing taxes on higher incomes. The measure would generate an estimated $2.7 billion annually for education, health care, and early childhood services, with the additional revenue exempt from TABOR’s revenue limit. Imagine!’s Board supports this measure as a way to strengthen funding for essential public services.

Learn more about Amendment 87


Colorado continues to evaluate additional changes to Medicaid services, reimbursement, and funding. Some proposals remain under review, while others have been paused. These are not approved changes, and their details or timelines may change.

Policy or Service AreaWhat’s Being ConsideredCurrent Status & Potential Impact
Homemaker Services Provided by Legally Responsible Persons (LRPs)HCPF proposed limiting Homemaker services provided by legally responsible persons to seven hours per week per Medicaid member, replacing the previous allowance of up to five hours per LRP for two LRPs.Status requires confirmation. If adopted as proposed, the seven-hour limit would apply to the combined hours provided by LRPs within a household. Other authorized caregivers could potentially provide additional Homemaker services.
Residential Services (IRSS Rates)HCPF proposed aligning reimbursement rates for residential services across different settings. This could change how providers receive payment for residential supports.Paused. The proposal is not currently moving forward. HCPF could revisit or revise it in the future.
Medicaid Funding and Federal Matching OpportunitiesColorado’s Commission on Medicaid is examining strategies to strengthen Medicaid financing, including administrative claiming, qualifying local government expenditures, and opportunities to obtain additional federal matching funds.Under review. These are potential funding strategies, not approved changes to individual services. Some would require legislative action, federal approval, or changes to state policy.
Additional Medicaid Sustainability MeasuresHCPF continues to evaluate Medicaid costs, reimbursement, service delivery, and program operations as Colorado addresses ongoing budget pressures.Ongoing. Specific proposals may emerge through future budget, legislative, and rulemaking processes. Not every proposal will become policy.

Colorado has implemented several changes to Medicaid services, reimbursement, and program requirements. While these changes are in effect, future policy decisions may result in additional adjustments.

The table below summarizes these changes and what they may mean for people receiving services, families, and caregivers.

For the latest statewide information, visit HCPF’s Medicaid Sustainability & LTSS page.

Service Area / ChangeSummary of the ChangeImplementation & Key Details
Community Connector: Age AppropriatenessServices generally will not be available for children under age 6 without an assessed exception.April 1, 2026.

Exceptions may be authorized for extraordinary needs. Guidance
Community Connector: Service LimitsAnnual limit of 1,040 units (approximately 260 hours).April 1, 2026.

Additional services may be authorized based on assessed need. Fact sheet
Community Connector: Rate ReductionReduced provider reimbursement for Community Connector services.April 1, 2026.

Changes provider payment rates, not service eligibility. Fact sheet
HCBS Service LimitsAnnual limits for Personal Care, Homemaker, and Health Maintenance services.April 1, 2026.

Limits are flexible based on documented need. Fact sheet
Weekly Caregiving HoursPhased reduction in the maximum weekly hours one caregiver may provide.July 2026: 84 hours/week.
January 2027: 70 hours/week.
July 2027: 56 hours/week.

Applies per caregiver, not per person receiving services.
Across-the-Board Rate ReductionA 2% reduction in most Medicaid provider reimbursement rates.July 1, 2026.

Certain pediatric behavioral therapies, NICU, and maternal health codes were exempt.
Post-Eligibility Treatment of Income (PETI)Some DD waiver members must contribute toward residential service costs based on income and allowable expenses.August 1, 2026.

Not everyone assessed will owe a contribution.

October clarification: Non-residential service plan revisions alone do not trigger a PETI assessment. HCPF update · Imagine! FAQ
DD Waiver: Youth TransitionAutomatic DD waiver enrollment ends for youth transitioning from children’s waivers.July 2026.

Other waiver pathways or waitlists may apply. Emergency and priority situations are unaffected. Fact sheet
DD Waiver: Enrollment from OpeningsThe state will reduce by 50% the number of people moving into available DD waiver slots.July 2026.

Wait times may increase. Emergency and priority situations are unaffected. Fact sheet
CFC & Long-Term Home Health: Group RatesNew group reimbursement rates when one caregiver serves multiple people simultaneously.January 2027 (scheduled).

Group rates are lower per person; individual services remain available based on assessed need. Fact sheet

These are statewide Medicaid changes, not Imagine!-specific policies. Implementation and individual impacts depend on applicable state guidance and assessed need


This page focuses on the specific updates families may see in 2026. If you’re wondering why these changes are happening, the information below provides additional context.

Why Changes Are Happening

Colorado’s Medicaid program supports hundreds of thousands of people across the state, including many individuals who rely on long-term services and supports.

At the same time, the cost of providing services has grown faster than available funding. As a result, state leaders are making changes intended to help sustain the Medicaid program over time.

These are statewide decisions that affect many programs and providers across Colorado and are not specific to Imagine!.

Some changes took effect April 1, 2026. Additional changes are scheduled for July 1, 2026 and beyond. Other proposals remain under discussion or continue to evolve.

Because services, waivers, and individual circumstances vary, families may hear about these changes at different times through service planning meetings, case management conversations, advocacy organizations, or provider communications.

Ongoing State Discussions

In addition to the changes already approved, Colorado leaders continue to evaluate the future of the Medicaid program.

A new Commission on Medicaid began meeting in 2026 to review Medicaid funding, program operations, federal policy changes, and long-term sustainability. The Commission will gather input from Medicaid members, families, advocates, providers, and community organizations before making recommendations to state leaders later this year.


It may help to know that these updates reflect changes in how services are structured and reviewed, not a shift away from partnership or support.

  • Services will not automatically end or disappear.
  • Families will continue to play an active role in service planning.
  • Opportunities to ask questions, seek clarification, and request support remain in place.

Imagine! is committed to walking alongside families during this transition by:

  • Hosting informational sessions to share updates and answer questions
  • Offering opportunities for family engagement and advocacy
  • Coordinating internally so staff can provide consistent, accurate information
  • Partnering with case managers and advocacy organizations

We will continue to share updates as more clarity becomes available.


You don’t need to take action all at once. Helpful next steps include:

  • Letting Imagine! know when you have upcoming service plan or monitoring meetings
  • Asking questions when something feels unclear during service planning conversations
  • Making sure your family member’s needs are fully discussed and documented
  • Reaching out if you’ve already had conversations about changes and would like help thinking through next steps

It’s okay to ask for time, explanation, and support as you navigate this.