Colorado is projected to save money by covering abortions for Medicaid, Child Health Plan Plus recipients

Democrats' efforts to close the gap between the right to end a pregnancy in Colorado and the cost of the procedure by letting health insurance safety net programs pay for abortions is expected to save the state money, according to an analysis by nonpartisan legislative staff.

That's because some Medicaid and Child Health Plan Plus recipients aren't getting abortions because of the cost. And it's cheaper to end a pregnancy than to deliver a baby.

The Medicaid and Child Health Plan Plus abortion coverage would be offered starting in 2026 as part of the passage in November of Amendment 79, which enshrined abortion access in the state constitution and allowed public funds to be used to pay for the procedure, and once Democrats in the legislature sign off on Senate Bill 183.

Voters approved the ballot measure by a 24-point margin and Senate Bill 183, which implements the initiative by completing the public funding for abortions piece, is cruising through the Democratic-controlled Capitol.

Private insurers had to begin covering abortion access for their clients this year under a bill passed by Democrats in the legislature in 2023. Supporters of Amendment 79 and Senate Bill 183 feel it's only fair that people getting public assistance for their health care coverage get the same benefit.

Nonpartisan analysts estimated in a fiscal note for the bill that about 5,500 Medicaid and Child Health Plan Plus recipients in Colorado will seek an abortion each year if the cost is covered by the state. Most of those would end their pregnancies whether the procedure was covered or not, but as many as 1,700 patients would give birth.

Since the average reimbursement cost of labor and delivery — $3,850 — is more than the average reimbursement cost of an abortion — $1,300 for a procedural abortion and $800 for a medication abortion — the state will save at least $550,000 a year by paying for abortion care.

"In the first full implementation year, costs for abortion services are estimated to be $5.9 million, while cost savings for averted births are estimated to be $6.4 million," the fiscal note for Senate BIll 183 says.

The long-term savings could be even greater.