Some believe 2Q to be helpful for Denver's underserved despite potential sales tax hike

Some believe 2Q to be helpful for Denver's underserved despite potential sales tax hike

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Categories: Local News, CBS 4
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Denver voters can expect to see several ballot issues regarding proposed tax increases.

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Measure 2Q proposes a 0.34 percent sales tax increase to support Denver Health. Supporters estimate the measure could raise between $65 million and $70 million annually. The hospital predicts losing $155 million this year due to uncompensated care.

This increase, while modest, could push Denver's city sales tax rate over 9%. Denver Health warns that if the measure fails, it might lead to cuts that would impact city residents, especially those in underserved communities. 

Alfredo Reyes, a first-generation Mexican-American and Denver native, knows how effective the hospital's services are firsthand. As he clears the energy with sage, he begins to set his intentions, "To honor all those who have lost their lives here," including his parents. Reyes says he is more than grateful for the care his parents and family have received at Denver Health.

"My mother received three open-heart surgeries and her primary care here," Reyes said. He adds, if it wasn't for Denver Health, it would have been difficult for his parents to get care.

Denver Health provides various services to low-income populations but is struggling to manage an influx of uncompensated care. Dr. Alexandre Padilla, chair of the Department of Economics at MSU Denver, acknowledges that much of this care is linked to an increase in the population and undocumented immigrants without health insurance.

Denver Health has emphasized that is just one reason, but approximately half of the uncompensated care comes from Medicare and Medicaid patients. The programs do not often provide enough reimbursement to cover care costs.

"By having taxpayers contribute to some of the increase in healthcare costs, you incentivize hospitals and providers to use their resources more efficiently," Padilla said.

He also adds it should not always have to fall on taxpayers, but instead, the healthcare system as a whole should work to create more programs and affordable healthcare for all.

As of now, there is no organized opposition to Measure 2Q. However, if it passes alongside other measures on the ballot, Denver could have the highest overall tax rate among major Colorado cities. Denverites could ultimately feel the pinch of more than a 9 percent sales tax rate.

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