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Colorado’s Medicaid agency moved to terminate FreedomCare of Colorado’s provider agreement after state officials cited alleged deficiencies in oversight, staffing and care delivery affecting members across 17 counties. FreedomCare disputes the action and, under a preliminary injunction reported by the Colorado Sun, may continue serving existing clients while the case proceeds.
Colorado’s Department of Health Care Policy and Financing is seeking to terminate FreedomCare of Colorado’s Medicaid provider agreement, citing alleged oversight and care-delivery failures affecting more than 700 members across 17 counties. The company disputes the state’s action and, according to the Colorado Sun, has obtained a preliminary injunction allowing it to continue serving existing clients while the case proceeds.
The state sent FreedomCare a termination letter on Sept. 16, following inspections that it said found significant noncompliance. A survey completed between July and August 2026 recorded 27 deficiency tags and nine findings the state classified as immediate jeopardy, requiring prompt correction. Those are regulatory findings described in the state’s letter, not a final court determination.
The letter alleged that the provider failed to investigate and resolve complaints, maintain required care plans and records, complete caregiver skills checks and conduct background checks. It also cited a lack of backup staffing when scheduled caregivers were unavailable. The state said some members were placed on hold without needed services and described the resulting circumstances as neglect.
Colorado told the company it could no longer accept new Medicaid clients and that services for new clients would not be reimbursed. The state said it would continue paying for covered services to existing clients for up to 60 days after the letter. The Colorado Sun reported that FreedomCare says it corrected the cited issues and sent a 36-person team, including 13 registered nurses, to Colorado. The company’s attorney argued regulators did not return to verify the remediation.
State Oversight of Home Care Providers
The case shows how Medicaid program-integrity enforcement can involve more than scrutiny of payment totals: Colorado’s stated grounds for action focus on staffing, supervision and continuity of care. State officials say members did not consistently receive required services when regular caregivers were unavailable, making the dispute relevant to people who rely on Medicaid-funded in-home support and the providers that coordinate it.
For providers, the allegations highlight the operational systems regulators may examine, including complaint handling, caregiver qualification records, local oversight and backup coverage. For clients, any provider termination can raise practical questions about how care will continue. The injunction reported by the Sun allows existing services to continue for now, but does not resolve the underlying dispute.
The case is also unfolding amid wider debate about Medicaid-funded paid family caregiving and program integrity. Enforcement actions based on alleged deficiencies at one provider do not establish that paid family caregiving generally involves fraud or poor care. The outcome may clarify how Colorado applies its requirements to a provider whose operations include remote administration.
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Inspections Before the Termination Letter
Colorado’s account traces concerns to April 2025, when officials attempted a survey inspection. According to the state, the agency said its owner was abroad and no backup administrator was available. FreedomCare then submitted a correction plan, which the Colorado Department of Public Health and Environment accepted in May 2025. At a further attempted inspection in October, the state said the owner was again unavailable and there was no backup administrator.
FreedomCare completed its initial licensing and certification surveys in May 2022. The company operates in 15 states and helps eligible Medicaid recipients select their in-home caregivers, while handling services such as enrollment, payroll, training and compliance. The recipient directs the care plan. The model’s reliance on provider administration and individual caregivers makes local supervision and backup arrangements central to the allegations in Colorado’s letter.
The Colorado Sun reported that Medicaid payments to FreedomCare rose from about $1 million last year to nearly $22 million so far this year. That increase drew scrutiny, but the termination letter’s stated grounds center on alleged operational and client-care deficiencies. The figures describe reported payments over those periods; they do not by themselves establish wrongdoing.
“The company said it corrected the findings and sent a team of 36 people, including 13 registered nurses, to Colorado.”
— FreedomCare, as reported by the Colorado Sun
Court Review and Client Transfers
The dispute has not been resolved. The Colorado Sun reported that a preliminary injunction permits FreedomCare to continue serving existing clients while further proceedings take place, but the available reporting does not establish the final legal outcome or the full terms and duration of that order.
It is also unclear whether regulators have since verified the company’s claimed corrections, how many clients could be affected if termination takes effect, or what arrangements would be made for their care. The source material does not provide a later state inspection result or a final court ruling. The company did not respond to Home Health Care News’ request for comment before that report’s publication.
Next Steps in Colorado’s Case
The next major development is the court’s handling of FreedomCare’s challenge and any changes to the preliminary injunction. Colorado’s agency may continue pursuing termination, while the company can present its account of remediation and contest the state’s findings. The timing of further proceedings is not specified in the source material.
Clients and caregivers will need clear information if the provider’s status changes, including whether services can continue and how any transfer would be organized. A final decision, further inspections or an agency update could clarify the provider’s future in Colorado and whether the state considers the cited deficiencies corrected.
Key Questions
Why is Colorado seeking to terminate FreedomCare’s Medicaid agreement?
The state’s termination letter alleges failures involving complaint investigations, caregiver checks and training, care plans, documentation, backup staffing and continuity of care. FreedomCare disputes the action.
Can FreedomCare keep serving its existing clients?
According to the Colorado Sun, the company obtained a preliminary injunction allowing it to continue serving existing clients while further proceedings take place. The state had said it would cover eligible services for existing clients for up to 60 days after its letter; the court order’s full terms are not detailed in the source material.
What did Colorado’s inspection find?
The state said a survey conducted between July and August 2026 resulted in 27 deficiency tags and nine immediate-jeopardy findings. These are findings and allegations described by regulators, not a final court ruling.
Does the increase in Medicaid payments prove wrongdoing?
No. The Colorado Sun reported payments rose from about $1 million last year to nearly $22 million so far this year, but the figures alone do not establish misconduct. The termination letter cited alleged operational and care-delivery failures.
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