Colorado Terminated Freedom Care Medicaid Contract
The state move forces operators to assess compliance risks and the stability of home-care vendor partnerships.
Updated on Oct. 7, 2026 in Healthcare
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Colorado state officials terminated a Medicaid agreement with home-care provider Freedom Care following reports of abuse and billing fraud. The move leaves the company, which employs 732 caregivers and serves over 700 Medicaid clients, in a legal battle to maintain its operations.
Why it matters
State officials allege Freedom Care prioritized profits over patient safety, highlighting the heightened regulatory scrutiny surrounding Medicaid-funded home-care agencies. This case underscores the operational risks operators face when rapid growth outpaces internal compliance and quality oversight.
Freedom Care received nearly $22 million in Medicaid payments in 2026, a significant increase from approximately $1 million in 2025. The company serves over 700 Medicaid clients in Colorado, where the state is currently managing a $1.6 billion budget shortfall.
The players
Freedom Care
A multi-state home-care provider currently operating in 15 states with a focus on Medicaid-funded personal care services.
Colorado Department of Public Health and Environment
The state agency responsible for health facility oversight, inspections, and enforcement of regulatory standards.
The details
The state inspection identified nine findings of immediate jeopardy, alleging the company failed to meet regulatory requirements while prioritizing profits. In response, Freedom Care has secured a preliminary injunction in Denver District Court, allowing it to continue operations temporarily. The firm, which operates in 15 states, must now prepare for an upcoming administrative hearing to contest the termination.
Timeline
Freedom Care obtained its Colorado operating license in 2022.
The first state attempt to inspect Freedom Care operations occurred in April 2025.
The Colorado Medicaid program issued a termination notice to the company in September 2026.
An administrative law judge will hold a hearing on Oct. 29-30 regarding the company's future.
The state set a Nov. 15 deadline for Freedom Care to stop providing services.
Market Landscape
The termination of Freedom Care's contract follows a pattern of heightened oversight of home-based Medicaid providers. This action marks a departure from standard oversight, signaling a more aggressive enforcement posture against home-care providers amid state budget constraints.
Operators should review their own compliance documentation and audit readiness, as states are increasingly using findings of immediate jeopardy to justify contract terminations. Maintain clean billing and safety records to avoid similar regulatory exposure during budget-conscious fiscal cycles.
The takeaway
Rapid scaling in the Medicaid space requires robust compliance infrastructure to prevent oversight gaps that can lead to license loss. Review your current reporting protocols and prepare for potential audits by tracking compliance metrics quarterly.
What happens next
An administrative law judge is scheduled to hold a hearing on Oct. 29-30 to determine if Freedom Care may continue its operations in the state, followed by a state-mandated deadline to cease services on Nov. 15.
Further reading
For context on regulatory standards and industry oversight, see Healthcare.
Source note: This article includes information reported by The Colorado Sun.
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