If someone you love is finishing a sentence in a Colorado correctional facility and has a substance use disorder, the weeks around release are the ones that decide most. Colorado changed the rules on this in 2026. Health First Colorado (the state’s Medicaid program) can now pay for substance use treatment before a person walks out, and keep paying after.
This article explains what changed, who qualifies, and what the first call looks like.
What M-REACH is
M-REACH is Colorado’s Medicaid reentry benefit. The Centers for Medicare & Medicaid Services approved Colorado’s request for it on January 13, 2025, and Phase 1 took effect January 1, 2026. [1]
Before this, federal law generally barred Medicaid from paying for care while a person was incarcerated. That created a gap: someone could be assessed, stabilized, and ready for treatment, and then released on a Tuesday with no coverage, no appointment, and no medication. M-REACH closes part of that gap by letting Health First Colorado reimburse specific services in the period leading up to release. [1]
Who qualifies right now
Phase 1 applies to people held in state-run correctional facilities who are eligible for Health First Colorado. [1]
That is narrower than many families expect. It does not yet cover every county jail in Colorado. If your family member is in a county facility, the right question to ask the facility’s care coordinator is which reentry supports that specific county offers, and whether the person’s Medicaid application has been submitted rather than suspended.
Two things are worth doing early, regardless of facility type:
- Confirm Medicaid status. Coverage is often suspended rather than terminated during incarceration, which makes reactivation faster than a new application.
- Ask who the reentry or care coordinator is. Every referral in this process runs through a person, and finding out who that is months ahead is easier than finding out the week of release.
What the benefit covers before release
M-REACH allows Health First Colorado to reimburse substance use treatment services and care coordination for up to 90 days before a person’s release date. [1]
The practical value is sequencing. Assessment, treatment planning, and the handoff to a community provider happen while the person is still inside, so the release date becomes a transfer rather than a starting line. For someone with an opioid use disorder, it also means medication decisions can be made in advance instead of during withdrawal in the first week out.
Why coverage continues for a year afterward
M-REACH pairs the pre-release benefit with 12 months of continuous Health First Colorado eligibility after release. [1]
Continuous eligibility matters because the ordinary Medicaid renewal process assumes a stable mailing address, and the months after release are the least stable period most people will have. A missed renewal notice at a former address has historically been enough to end coverage in the middle of treatment. Twelve months of protected coverage removes that particular failure point.
Denver’s Recovery Court and court-ordered treatment
Separately from M-REACH, Denver County Court launched a Recovery Court in March 2026 for people facing drug-related misdemeanors, replacing an earlier diversion program. [2]
Problem-solving courts of this kind generally connect participants to treatment as an alternative to incarceration, with the court monitoring progress. If a judge has ordered treatment, or a public defender has raised it as an option, two questions are worth asking directly: which providers the court will accept, and whether medication for opioid use disorder is permitted while enrolled. Courts vary on the second, and the answer changes which programs are a fit.
Medication for opioid use disorder, including buprenorphine and methadone, is supported by the U.S. Substance Abuse and Mental Health Services Administration as an evidence-based treatment for opioid use disorder. [3] Being on methadone won’t keep someone out of treatment at Sheridan Grove Recovery: patients can continue daily dosing through a licensed opioid treatment program while in our care, and an authorized medical provider determines which option is appropriate.
What treatment looks like at Sheridan Grove Recovery
Sheridan Grove Recovery is an 80-bed treatment center providing care for the Denver metro at 2000 S. Blackhawk St in Aurora, Colorado, licensed by the Colorado Behavioral Health Administration as a Behavioral Health Entity and accredited by The Joint Commission.
We provide two levels of care:
- Medically supervised withdrawal management (detox): 24/7 nursing support while the body clears substances, with medication used to manage symptoms where clinically appropriate.
- Residential treatment: structured care after detox, including individual and group work, family involvement, and medication for opioid use disorder where it is indicated. Suboxone and Subutex are available.
Two things are relevant to reentry specifically. First, we work with people coming from jail, court, or probation. Second, Sheridan Grove is a VA Preferred Provider, which matters if the person coming home is a veteran.
We accept Health First Colorado, and both Medicaid and commercial insurance are accepted. Sheridan Grove is a VA Preferred Provider and also accepts TRICARE and VA contract coverage. Admissions answers 24/7.
Treatment is planned individually. Care is decided based on assessment, not by a fixed template, and we will tell you plainly when you call whether we are the right fit.
Frequently asked questions
Does Health First Colorado cover residential substance use treatment in Colorado? Yes. Health First Colorado covers medically necessary residential treatment for substance use disorders. Whether a specific admission is authorized depends on a clinical assessment. Admissions verifies coverage before admission and tells you what we find.
Can Medicaid pay for treatment while someone is still incarcerated? Under M-REACH Phase 1, Health First Colorado can reimburse substance use treatment and care coordination for up to 90 days before release for eligible people in state-run correctional facilities. [1]
What if my family member is in a county jail rather than a state facility? Phase 1 of M-REACH applies to state-run facilities. [1] Ask the facility’s care or reentry coordinator what that county offers and confirm whether the person’s Medicaid is suspended rather than closed, since reactivating suspended coverage is generally faster.
Will Medicaid coverage end right after release? M-REACH provides 12 months of continuous Health First Colorado eligibility following release, which protects coverage through the period when address changes most often interrupt it. [1]
Does a court-ordered referral change how admission works? The clinical assessment is the same. What differs is documentation: courts usually require confirmation of admission and periodic progress reporting. Tell us at intake that treatment is court-involved so we can set that up correctly from the start.
Can someone continue medication for opioid use disorder in a court program? That depends on the court. SAMHSA recognizes medication for opioid use disorder as an evidence-based treatment. [3] Ask the court or the person’s attorney directly, because policies differ between programs.
Does Sheridan Grove admit people with a criminal record? Yes. We admit adults who are justice-involved or recently released. Being on probation, parole, or in a court-ordered program does not by itself rule out admission.
What should we have ready when we call? The person’s name and date of birth, their insurance or Medicaid ID if you have it, the substances involved and roughly when they were last used, any current medications, and the release or court date if one is set. If you do not have all of it, call anyway; we will work with what you have.
Talk to admissions
If someone in your family is approaching release, or a court has raised treatment as an option, call Sheridan Grove Recovery at 303.268.2987. Admissions answers 24 hours a day. We will verify coverage, talk through what care would look like, and be straight with you about timing.
Sources
- Colorado Department of Health Care Policy & Financing. “Medicaid Reentry: Engagement, Access, and Coordination for Health (M-REACH).” https://hcpf.colorado.gov/mreach
- Colorado Politics. “Denver announces new court for those battling substance abuse.” March 23, 2026. https://www.coloradopolitics.com/2026/03/23/denver-announces-new-court-for-those-battling-substance-abuse/
- U.S. Substance Abuse and Mental Health Services Administration. “Substance Use Disorder Treatment Options.” https://www.samhsa.gov/substance-use/treatment/options