CCLP testifies against bill that could harm low-wage workers

CCLP testifies against bill that could harm low-wage workers

by Katherine Wallat, Esq. | May 12, 2026

federal action, Health, Income, Legislative Updates, Public Benefits, Research and Policy Analysis, Testimony, Workers

On Thursday, Katie Wallat, Legal Director at CCLP, provided testimony against House Bill 26-1327, Large Employer Worker Health-Care Support. The bill aimed to address the problem of large corporations relying on the state to provide health insurance by paying their workers low enough wages to enroll in Medicaid. However, it would have targeted employers based on their employee Medicaid enrollment, making these workers a financial liability. CCLP agrees corporations should pay their fair share, but ultimately opposed the bill because of the harm it could cause workers perceived to use Medicaid due to their age, disability, or income level.

Thank you Madame Chair and members of the committee. I am Katie Wallat, the Legal Director at the Colorado Center on Law and Policy. CCLP is a nonprofit, nonpartisan antipoverty advocacy organization. We agree with the sponsors of this bill that it is a problem that big corporations rely on the state to provide health insurance by paying their workers' wages low enough to enroll them in Medicaid. However, I testify today in opposition because of the risks to the low-wage workers this bill seeks to help.

The employers targeted in this legislation are defined by the number of Medicaid enrollees they hire, but the bill is internally inconsistent in its definitions of which employees will count. There are several different types of disability categories in the Medicaid program, and while the intention was to exclude disability enrollees from the calculation, the bill does not do that. The fiscal note may not be properly identifying the different disability categories in Medicaid in its calculations either.

The bill creates an incentive for businesses to ensure that fewer employees are on Medicaid, because those that are, will become a financial liability. These companies will work to avoid paying the proposed penalties by changing their hiring practices to discriminate against workers who they perceive might be on Medicaid based on their age, disability status, or income level; by reclassifying employees; or by cutting hours-impacts that have already been seen in other states with similar policies.

These impacts will be compounded by the implementation of HR 1's work requirements, requiring expansion Medicaid enrollees to meet minimum work hour thresholds to maintain their coverage. Access to these work hours is controlled by the employers who would be newly incentivized to ensure fewer workers are enrolled in Medicaid.

Finally, for most low-wage workers relying on Medicaid, moving to private health insurance is simply unaffordable. Exempting businesses from paying penalties if they offer health insurance that is, in reality, completely inaccessible to their low-wage workers, does nothing to support our safety net.

These impacts would undermine the goals of the bill, and would limit access to stable employment for already vulnerable groups. I urge you to vote no. I would be happy to answer questions.

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