Governor Polis Signs Laws, Takes Executive Action to Fix the Billion Dollar Budget Hole Created by Trump and Congressional Republicans

On August 28^th, the Governor issued an executive order to outline budget cuts he is implementing to balance the current year state budget. Due to the passage of HR 1, the state budget is almost a billion dollars out of balance. The Governor and legislature worked together to pass various measures during the August 2025 special session to help balance the budget. However, the Governor had to make additional cuts via executive order. There are several cuts that impact psychologists who are Medicaid providers as well as mental health. Below is a list of those cuts:

• Fifty four million nine hundred forty thousand eight hundred fifty six dollars ($54,940,856) appropriated for Medical Services Premiums from the General Fund is suspended and not available for expenditure.
• Reversion of the 1.6% provider rate increase that was effective as of July 1, 2025. It will be phased out starting in October.
• Implements pre and post claim review of all pediatric autism behavioral therapy codes.
• Adjusts the pediatric behavioral therapy rates to 95% of the benchmark on updated, current average rates.
• Reduces payments to providers and RAEs for meeting performance outcomes for behavioral health.
• Reinstate prior authorization to align utilization with best practices for outpatient psychotherapy services.
• Sixteen million one hundred twenty thousand eight hundred ten dollars ($16,120,810) appropriated for Behavioral Health Capitation Payments from the General Fund is suspended and not available for expenditure.
• Three million dollars ($3,000,000) appropriated for Children’s Extensive Support Services from the General Fund is suspended and not available for expenditure.
• Five hundred thousand dollars ($500,000) appropriated for Screening, Brief Intervention, and Referral to Treatment Training Grant Program from the Marijuana Tax Cash Fund is suspended and not available for expenditure.
• Two hundred one thousand eight hundred forty three dollars ($201,843) appropriated for Mental Health Institute at Fort Logan Personal Services from the General Fund is suspended and not available for expenditure.
• One million five hundred seven thousand five hundred twelve dollars ($1,507,512) appropriated for Mental Health Institute at Pueblo Personal Services from the General Fund is suspended and not available for expenditure.

You can access the Governor’s letter to the Joint Budget Committee as well for a thorough review of all the cuts outlined above.

Act Now: Demand the Administration Preserve Access to Psychology Services

Take action today by sending messages to the Centers for Medicare and Medicaid Services (CMS) to protect access to psychological services in 2026 and set an important standard across the healthcare sector. 

The link provided below contains a template message to CMS. Please feel free to adapt this language to fit your personal voice and experience. State, provincial and territorial psychology associations (SPTAs) seeking to submit formal letters will receive separate template language from APA Services.

Make Your Voices Heard on the Medicare Physician Fee Schedule Proposed Rule 

Your Advocacy Will Continue Building on Successful Efforts from Previous Years

The CY 2026 Physician Fee Schedule (PFS) proposed rule issued by CMS contains many proposals that benefit the field of psychology and patients alike. APA Services, along with psychology stakeholders like you, have worked hard to achieve this result through advocacy with and education of leadership at CMS and the Department of Health and Human Services (HHS), which oversees CMS. By sending a brief message to CMS, you are helping elevate the visibility of the science, practice, and discipline of psychology to federal agencies, and protecting the well-being of underserved populations beyond Medicare beneficiaries.

Why Is the Physician Fee Schedule Important?

CMS’ annual PFS proposed rule has serious implications across health care. Because this rule has a strong influence on coverage and reimbursement policies in other health care programs, all psychologists — whether they are consultants, researchers, clinicians, educators, or students — have a stake in this rule. 

Thanks to the high degree of psychologists’ engagement in prior PFS federal regulatory comment campaigns, as well as a multipronged advocacy effort by APA staff over several years, the proposed rule contains several provisions favorable to services provided by psychologists, and CMS needs to hear that these policies are supported by psychologists and allies of psychology to finalize them. These policies include: 

• Preserving access to psychological services furnished to Medicare beneficiaries via telehealth;
• Permanently adopting a definition of direct supervision that allows “immediate availability” of the supervising practitioner via two-way audio/video communication; 
• Creating a new pathway for neuropsychologists to participate in Merit-based Incentive Payment Systems.  

Other proposals require the expertise of psychologists to guide CMS in a more positive direction. These proposals include:

• Removal of a reimbursement code for clinician assessment for Social Determinants of Health;
• Maintaining an inconsistent and inadequate reimbursement policy for the supply of Digital Mental Health Treatment and Remote Therapeutic Monitoring tools;
• Changes to reimbursement codes for outpatient behavioral health services, including those critical to the proper assessment of developmental and neuropsychological conditions, and those playing an integral role in the management of chronic illness.

Send a Comment to CMS Today!

While our template message can be sent in its entirety, you can also personalize the text and/or remove components that are not relevant to you.

How Much Time Do I Have to Comment?

The comment period closes at 11:59pm EDT on September 12, 2025. Please contact Doris Parfaite-Claude, MPP with any additional questions.

Join CPA in Making a Difference — Volunteer Opportunities Await!

The Colorado Psychological Association (CPA) warmly invites members to volunteer across committees, divisions, and task forces. Your commitment can help drive programming, promote advocacy, nurture diversity, and support our professional network.

At CPA, our volunteer leaders are our lifeblood. Whether you're new to the field or a seasoned psychologist, your voice and time can help advance psychology in Colorado. Join us in building a more vibrant, inclusive, and engaged community.

Fill our our volunteer form here!

ACT NOW! Demand the Administration Preserve Access to Psychology Services! 

Dear CPA Members, 

APA has just released an Action Alert on the CMS (Centers For Medicare and Medicaid) 2026 Physician Fee Schedule (PFS) Proposed Rule. This impacts all of us in the field as it not only sets federal reimbursement policy but influences coverage decisions across the entire health care system. 

CMS’ annual PFS proposed rule has serious implications across health care. Because this rule has a strong influence on coverage and reimbursement policies in other health care programs, all psychologists — whether they are consultants, researchers, clinicians, educators, or students — have a stake in this rule!

I ask that you take two minutes of your time to comment to CMS and to take another two minutes to share this action alert with your networks! In past years, our advocacy has made a huge difference including helping to permanently protect access to psychology through telehealth beyond the COVID crisis.  Please click here to learn more and participate! 

You can simply click here and there is a pre-composed template that you can use in its entirety or you can personalise the message in any way that is relevant for you. Either way, please comment by September 12, 2025 to ensure that your comments are received! 

In case you missed it– CPA is hosting a timely Continuing Education Webinar entitled “Advocating to Policy Decision Makers” on September 10th from 8 am to 10:30 am MST. You can still sign up here. 

Thank you,