Colorado Considers Fees for Corporations With Low-Wage Workers on Medicaid

Lawmakers aim to claw back 'corporate welfare' as state faces $1.5 billion budget shortfall

Apr. 7, 2026 at 6:14am

Got story updates? Submit your updates here. ›

A dynamic, abstract painting featuring overlapping geometric shapes and waves of blue, green, and gray color, conceptually representing the political and economic tensions around corporate welfare.A fractured, colorful illustration captures the disruption and debate over corporations' reliance on public assistance programs.Denver Today

After federal Medicaid cuts, Colorado lawmakers are proposing legislation that would require large corporations like Amazon and Walmart to pay fees if a significant portion of their workforce relies on the state's Medicaid program for health coverage. The goal is to recoup some of the costs taxpayers are shouldering to subsidize low wages at profitable companies.

Why it matters

Colorado is facing a major budget shortfall, with Medicaid costs being a significant driver. Lawmakers argue that large corporations with high numbers of employees on Medicaid should contribute more to offset those public health insurance expenses, rather than passing the costs on to taxpayers.

The details

The proposed legislation, House Bill 1327, would impose fees on companies where a certain percentage of workers rely on Medicaid. Supporters say this would make corporations pay their 'fair share' instead of relying on the safety net program to cover employee health costs. However, industry groups argue the fees would simply be passed on to consumers through higher prices.

  • After Congressional Republicans cut Medicaid funding in their 'One Big Beautiful Bill Act'
  • Colorado is currently facing a $1.5 billion budget shortfall

The players

Rep. Lisa Feret

A Democratic state representative from Arvada who is sponsoring the corporate fee legislation.

Colorado Retail Council

An industry group representing retailers in the state, which has argued that companies are already paying their fair share through taxes.

Walmart

A major retailer with a significant number of employees on Medicaid, which has warned the fees could be passed on to consumers.

Got photos? Submit your photos here. ›

What they’re saying

“We as taxpayers, as Coloradans, are footing the bill of a lot of these large employers' health care of their employees. That's just not OK.”

— Rep. Lisa Feret, State Representative

“Walmart having 30% or more of their employee workforce on Medicaid, Amazon having 40% or more of their workforce on Medicaid, that is overusing a program that is meant to be a safety net program.”

— Rep. Lisa Feret, State Representative

“The data actually shows a small subset of those people want to actually be part-time. Most of them, for example, Walmart, 69% of their workers want to actually work more hours. They're just not offered them. They're not given that chance.”

— Rep. Lisa Feret, State Representative

What’s next

The proposed legislation, House Bill 1327, will be considered by Colorado lawmakers in the coming legislative session.

The takeaway

This debate over 'corporate welfare' highlights the ongoing tensions between businesses, workers, and taxpayers when it comes to the costs of public assistance programs. As states grapple with budget shortfalls, the question of how much responsibility large corporations should bear for their low-wage workforce is likely to continue being a point of contention.