The Colorado Association for Behavior Analysis and 11 providers sued the state of Colorado on Tuesday, alleging that a requirement that they get advance permission to bill Medicaid is violating the law by making it harder to get mental health care.

Colorado faced a $783 million budget gap after H.R. 1, colloquially known as the “Big Beautiful Bill,” passed Congress. The state’s tax laws automatically adjust to stay in line with federal rules , and while lawmakers reversed some of the changes, they left it to Gov. Jared Polis to come up with about $252 million in cuts and sweeps from unused state funds. About one-third of the affected dollars came from Medicaid.

The state estimated that one of the cuts, requiring prior authorization for applied behavior analysis and opening up the p

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