2026 Colorado Legislative Session Recap

2026 Colorado Legislative Session Recap

On May 13, the Colorado Legislature wrapped up its 2026 regular session. Lawmakers were busy this year, introducing more than 600 bills. The main focus was the $1.2 billion budget deficit and its impacts on departments, public services, and tax policy. Other major issues included health care policy, cost of living in Colorado, artificial intelligence, labor, and more.

As part of the focus on Medicaid spending’s role in Colorado’s budget shortfall, members of the legislature advocated for a change in leadership at the Department of Health Care Policy and Finance (HCPF). In April, former executive director Kim Bimestefer resigned, and Governor Polis appointed Gretchen Hammer to the position.

This was the last year of Governor Polis’ administration, and only 21 of the 100 members of the General Assembly are guaranteed to return after the election this coming November. 

HCA Healthcare is providing this session update to keep colleagues informed on key legislative developments that may affect care and access in the communities we serve.

Budget

In an attempt to close the $1.2 billion deficit, Governor Polis’ budget proposal included cuts to multiple departments, including significant Medicaid cuts. Hospitals and healthcare providers worked together to protect patients in the face of these threats, and defeated or lessened the impact of the following proposals:

• $60 million cut to Graduate Medical Education (GME) programs that Colorado relies on to provide care and educate the next generation of physicians
  • DEFEATED
• Reduction in the reimbursement rate for high-cost specialty drugs used to treat life-threatening conditions in adults and children
  • DEFEATED
• 3.9% across-the-board rate cut to all Medicaid providers.
  • Cut reduced to 2%, exempted NICU and maternity care
• Reduction in physician select rates to 85% of Medicare
  • Exempted NICU and maternity care

Hospitals and healthcare partners also advocated for policies to protect patients across the scope of issues that the legislature considered. The following notable bills were passed by the legislature and signed by Governor Polis:

Hospital Policy

HB26-1432 ends the duplicative Hospital Transformation Program (HTP) and directs HCPF to consider the Hospital Quality Incentive Payment (HQIP) Program as Colorado’s primary hospital quality program.

SBH26-138 is an attempt to reduce administrative burdens on health care providers. It makes the Hospital Discounted Care (HDC) program more workable for providers and patients, shifts some licensure reporting requirements from annual to once every two years, streamlines non-essential hospital reports, and limits how frequently the state can change reporting requirements.

HB26-1328 requires that the state reprogram its non-emergency medical transportation (NEMT) program in order to secure the appropriate federal matching dollars. This could mean an approximate $30 million annual savings for the state of Colorado.

HB26-1305 aligns state law with federal rules and allows psychiatric inpatient health care facilities to operate under a hospital’s main license. This solves a problem that the state created previously by using a separate definition and requiring a separate license. This bill aims to limit confusion and should lead to fewer reimbursement disputes.

Artificial Intelligence (AI)

SB26-189 rewrites the existing Colorado AI statute initially passed in 2024. The old statute was scheduled to take effect in June of this year, and it would have been highly problematic for hospitals and businesses across Colorado more broadly. The newly adopted AI law is more workable for health care providers and businesses in Colorado.

Workforce: Labor Peace Act

HB26-1005, the Worker Protection Collective Bargaining bill, sought to end the second-vote provision in Colorado’s Labor Peace Act. Currently in Colorado, employees must approve unionization and union dues/fee deductions in two separate votes. If organizing workers vote to unionize, an employer cannot withhold funds from paychecks for union fees/dues until the subject group of employees approves the second vote, which must pass with 75% approval. The bill would have allowed those agreements to be negotiated through the collective bargaining process after employees vote to unionize. HB 26-1005 was passed by the legislature, but Governor Polis vetoed it on May 28.