Colorado Terminated Medicaid Deal With Freedom Care
The state alleges the provider failed to protect clients and violated safety regulations.
Updated on Oct. 7, 2026 in Healthcare
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Colorado has moved to end its Medicaid agreement with Freedom Care following investigations that uncovered nine findings of immediate jeopardy. State officials claim the provider prioritized profits while failing to meet essential regulatory requirements.
Why it matters
The state alleges the company engaged in billing fraud and instances of abuse, creating a significant threat to client safety. This decision comes as Colorado works to address a broader $1.6 billion budget shortfall.
Freedom Care received $22 million in 2026 Medicaid payments, a significant increase from $1 million in 2025. The company currently employs 732 caregivers in Colorado and serves more than 700 Medicaid clients.
The players
Freedom Care
A healthcare provider operating across 15 states that specializes in home-based Medicaid services.
Colorado Department of Public Health and Environment
The state agency responsible for conducting inspections and overseeing the regulatory compliance of healthcare providers.
The details
The Colorado Department of Public Health and Environment issued the findings after inspections, citing imminent threats to client health. Freedom Care has challenged the state's termination notice in Denver District Court and obtained a preliminary injunction to maintain services until the administrative hearing concludes.
Timeline
Freedom Care received its license to operate in Colorado in 2022.
State authorities first inspected the company's operations in April 2025.
The Colorado Medicaid program issued a formal termination notice in September 2026.
An administrative law judge will hold a hearing on Oct. 29-30.
The state set a deadline of Nov. 15 for the company to stop providing services.
Market Landscape
This move highlights increasing state scrutiny over private Medicaid providers amid a period of intense industry consolidation and fiscal pressure. The termination signals a departure from state reliance on rapid-growth contractors in favor of stricter regulatory oversight.
Current Medicaid clients served by Freedom Care face uncertainty regarding their ongoing home-based care access. Residents should monitor state communications for potential transitions to alternative providers if the termination proceeds.
The takeaway
The termination serves as a reminder of the critical importance of regulatory compliance in state-funded health programs. Families relying on Medicaid services should ensure their providers are meeting state standards to avoid interruptions in care.
What happens next
An administrative law judge will convene a hearing on October 29 and 30 to decide if Freedom Care can maintain its operations in Colorado.
Further reading
For additional context on state medical oversight, visit the Healthcare section.
Source note: This article includes information reported by The Colorado Sun.
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