Colorado Bill Targets Large Employers with Workers on Medicaid

Proposed legislation would charge companies $2,300 per employee receiving state benefits

Mar. 31, 2026 at 12:22am

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A dynamic, abstract painting featuring overlapping, geometric shapes and waves of blue, grey, and green, conveying the fractured and fast-paced nature of the political debate around a Colorado bill targeting large employers with workers on Medicaid.A fractured, avant-garde painting captures the complex tensions between Colorado lawmakers and large employers over healthcare policy.Grand Junction Today

A proposed Colorado bill, House Bill 26-1327, would target employers with 500 or more workers on Medicaid by creating an enterprise that charges these companies $2,300 for every supported employee they have, with the money going towards Medicaid benefits. The bill aims to encourage large corporations to provide affordable health coverage to their employees.

Why it matters

The bill is a response to concerns that large companies have been pushing people towards part-time positions that don't require offering health insurance, leading to more workers relying on Medicaid. Supporters believe the bill will incentivize employers to provide health coverage, while critics argue it could lead to job cuts and higher costs for consumers.

The details

The bill includes exemptions for public and nonprofit employers, as well as companies that provide affordable health coverage to all people working 20 or more hours a week or 80 or more hours a month. To identify the companies that would be affected, the state would prepare an annual large employer report, and the fees would start being charged in 2028 if the bill is passed.

  • The proposed bill, House Bill 26-1327, was introduced in the Colorado legislature in 2026.
  • If passed, the first set of data for the large employer report would be collected in 2027.
  • The fees would start being charged in 2028 if the bill is passed.

The players

Rep. Lisa Feret

A prime sponsor of the bill, representing Colorado's 24th district.

Katie Wolf

The lead lobbyist for the Colorado Retail Council, who has concerns about the bill.

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What they’re saying

“We're really trying to make sure that it's a fair process in terms of how we look at our budget. And this to me feels like a fair approach.”

— Rep. Lisa Feret, Prime Sponsor of the Bill

“If you make the jobs more expensive to create, then it's harder to offer those positions. And with part-time work, those jobs are usually offered for specific reasons, whether it be seasonal or to a special population.”

— Katie Wolf, Lead Lobbyist, Colorado Retail Council

What’s next

The Colorado legislature will continue to debate and consider the proposed bill, with a vote expected in the coming months.

The takeaway

This bill highlights the ongoing tension between providing affordable healthcare and the concerns of large employers about the potential impact on jobs and costs. The outcome could have significant implications for healthcare access and the relationship between the state and major corporations.