Denver, Colo. – Colorado has reached a settlement involving more inclusive treatment for thousands of its residents with physical disabilities, addressing previous practices that confined many to nursing homes when not strictly necessary. This agreement resolves allegations that state health officials were non-compliant with the Americans with Disabilities Act (ADA) by maintaining such restrictive environments for disabled individuals.
The settlement, announced by the U.S. Department of Justice, mandates significant reforms to promote greater independence and integration for people with disabilities, adhering to ADA’s principle of ensuring that services are provided in the least restrictive and most integrated setting. By February 2026, Colorado has committed to implementing multiple measures to align with these standards.
Key actions include assisting residents of nursing facilities to relocate, pinpointing individuals at risk of undue confinement, and enhancing access to relevant information that supports informed decision-making. Additionally, the state will strive to facilitate the search for accessible and affordable housing and link residents with Medicaid-supported long-term care services. These measures aim to grant individuals greater control over their care and expand support for family caregivers.
The agreement was reached in the aftermath of a 32-page report issued by federal investigators who determined that Colorado ranked high among states with a significant number of disabled persons confined to nursing homes with low-care needs. The probe highlighted serious risks associated with such unnecessary institutionalization, which often leaves many in settings that do not foster independence or community interaction.
Federal oversight also criticized Colorado’s long-term care system for its overreliance on institutional settings due to lack of adequate community-based service providers and structural inducements that favored nursing homes financially. This imbalance was exacerbated by a failure to manage home care continuity effectively and a reluctance to fund necessary home modifications such as wheelchair ramp installations.
Prior to the settlement, state health officials faced scrutiny for not acting swiftly enough to inform disabled individuals about available home-based services, and for bureaucratic delays that kept people in nursing homes longer than necessary. In response, the Colorado Department of Health Care Policy and Financing defended its track record, asserting that a significant majority of Colorado’s Medicaid recipients with disabilities receive support in less restrictive environments.
In opting to settle the lawsuit, state officials highlighted their intent to avoid the costs and complexities of prolonged litigation, thereby preserving resources. Kim Bimestefer, director of the Colorado Department of Health Care Policy and Financing, noted improvements in the metrics evaluating community vs. institutional care, emphasizing ongoing efforts to better serve the disabled population within the community.
This settlement marks a critical step towards rectifying systemic issues in Colorado’s handling of care for physically disabled individuals, aligning state practices with federal requirements and ensuring more dignified, autonomous living conditions for vulnerable populations.
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