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Colorado’s Medicaid agency moved to terminate its agreement with FreedomCare of Colorado, citing alleged oversight and care-delivery failures affecting more than 700 members in 17 counties. FreedomCare disputes the action, and a preliminary injunction allows it to continue serving existing clients while the case proceeds.
Colorado’s Department of Health Care Policy and Financing has moved to terminate FreedomCare of Colorado’s Medicaid provider agreement, citing alleged failures in oversight and care delivery that the state says affected more than 700 members across 17 counties. FreedomCare disputes the action, and a preliminary injunction allows it to keep serving existing clients while further proceedings continue.
The state’s termination letter describes what it called a pattern of abuse and widespread noncompliance. It alleges that FreedomCare failed to investigate and resolve complaints, arrange backup caregivers when scheduled workers were unavailable, complete required staff skills validations, conduct background checks, and maintain care plans and other records. The state also cited concerns about the company’s staffing and oversight arrangements, saying it had limited Colorado-based staff and did not appear to have adequate local capacity for in-person oversight or backup care.
According to the letter, some members were placed on hold without receiving services the state said they needed. The agency characterized the resulting circumstances as neglect and a failure to provide continuity and coordination of care. Colorado said FreedomCare could no longer accept new Medicaid clients and that services provided to new clients would not be reimbursed. The state said it would continue paying for covered services for existing clients for up to 60 days after the notice.
The dispute includes different accounts of the provider’s response. The Colorado Sun reported that FreedomCare said it corrected the findings and sent a 36-person team, including 13 registered nurses, to Colorado to address deficiencies. The company’s attorney argued that regulators did not return to verify the remediation. The Sun also reported that a preliminary injunction permits the provider to continue serving existing clients pending further proceedings.
Scrutiny of Medicaid Care Oversight
The action illustrates how states may use provider-agreement enforcement to address concerns about the delivery and oversight of Medicaid-funded home care. Colorado’s allegations focus not only on records and staffing requirements, but also on whether members could receive scheduled care and backup services when regular caregivers were unavailable.
The case also places pressure on a service model in which Medicaid recipients can choose their own in-home caregivers, including family members, while a provider handles functions such as enrollment, payroll, training and compliance. The state’s allegations concern FreedomCare’s operation and oversight; they do not, on the information available, establish that the broader model is inherently unsafe or that the alleged failures have been proven in court.
For members, the immediate issue is continuity of care. The injunction means existing clients can continue receiving services from FreedomCare for now, but the case leaves open whether the provider can retain its agreement and what arrangements may be needed if service responsibilities change.
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How the State Built Its Case
FreedomCare operates in 15 states and helps eligible Medicaid recipients select an in-home caregiver, with the company managing administrative and compliance functions. The Colorado provider completed initial licensing and certification surveys in May 2022, according to the source report.
The state’s account traces concerns to an attempted inspection in April 2025. Colorado officials said the owner was abroad and no backup administrator was available, preventing the survey. FreedomCare later submitted a correction plan that the Colorado Department of Public Health and Environment accepted in May 2025. During another attempted inspection in October, officials reportedly again found the owner unavailable and no backup administrator present.
Colorado completed a survey between July and August 2026 and reported 27 deficiency tags and nine immediate-jeopardy calls requiring immediate correction. Separately, the Colorado Sun reported that Medicaid payments to the provider rose from about $1 million the prior year to nearly $22 million so far this year. That spending increase drew scrutiny, but the termination grounds described in the letter center on alleged operational and client-care risks.
“The company said it corrected the findings and sent a team of 36 people, including 13 registered nurses, to Colorado to address the deficiencies.”
— FreedomCare, as reported by The Colorado Sun
Disputed Findings and Client Transfers
The allegations in Colorado’s termination letter have not been established as final court findings. FreedomCare disputes the action and says it corrected the cited deficiencies. The available reporting does not fully resolve what corrective work the state reviewed, what evidence each side will present, or how the court will rule.
It is also unclear how the injunction may affect the state’s proposed termination timetable, whether FreedomCare will be able to take on new Medicaid clients, and what arrangements would be made for existing members if the provider agreement ultimately ends. The source material describes continued service for existing clients under the preliminary injunction but does not detail individual care plans or any transfer schedule.
Court Review and Care Continuity
The immediate next development is further court proceedings over Colorado’s termination action and FreedomCare’s challenge. The preliminary injunction keeps the provider serving existing clients while that process continues, but the final status of its Medicaid agreement remains unresolved.
Colorado’s notice set out a limit of up to 60 days of continued payment for covered services to existing clients after the letter, while the injunction has allowed service to continue pending further proceedings. How those timelines interact, and whether additional court orders or state guidance will address coverage and transfers, is not specified in the available reporting. Members and their caregivers may need clear instructions from the state and provider about service continuity as the case develops.
Key Questions
What action has Colorado taken against FreedomCare?
Colorado’s Department of Health Care Policy and Financing sent a notice moving to terminate FreedomCare of Colorado’s Medicaid provider agreement, citing alleged operational, oversight and care-delivery failures.
Can FreedomCare still serve its existing clients?
Yes, for now. A preliminary injunction allows the provider to continue serving existing clients while further proceedings take place. The eventual duration and outcome remain unresolved.
What failures did Colorado allege?
The state alleged problems including complaint handling, backup-care arrangements, staff skills validations, background checks, care plans and documentation. It also raised concerns about local staffing and oversight. These are allegations in the termination action, not final court findings.
Why did FreedomCare dispute the termination?
As reported by The Colorado Sun, the company said it corrected the findings and sent a team that included 13 registered nurses to Colorado. Its attorney argued regulators did not return to verify the remediation. The dispute is continuing.
Does the reported rise in Medicaid payments explain the termination?
The source report says payments rose from about $1 million in the prior year to nearly $22 million so far in 2026, drawing scrutiny. It says the termination letter’s stated grounds focused on alleged operational failures and risks to clients; the payment figures alone do not establish wrongdoing.
Source: rss
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