Medicaid Long-Term Care Guide in Colorado
Long-term care eligibility, benefits, and how to apply through the Colorado Department of Health Care Policy & Financing.
What makes Colorado Medicaid different
Medicaid in Colorado is called Health First Colorado. While it is jointly funded by the state and federal government, it is administered by the state under federally set parameters. In addition to nursing home facility coverage, CO Medicaid provides Home and Community Based Services to help the elderly live in their homes or in assisted living residences.
Administered by the Colorado Department of Health Care Policy & Financing.
Program Types
Institutional / Nursing Home Medicaid
An entitlement; anyone who meets the eligibility requirements will receive assistance. Benefits are provided in Medicaid-certified nursing home facilities.
Level of care: Nursing Home
Medicaid Waivers / Home and Community Based Services (HCBS)
Not an entitlement; the number of participants is limited and wait lists may exist. Benefits are intended to prevent and delay nursing home admissions and may be provided at home, adult day care, or in assisted living.
Level of care: Nursing Home
Regular Medicaid / Aged Blind and Disabled (ABD)
An entitlement; if eligibility criteria is met, assistance is received. While Regular Medicaid is not Long-Term Care Medicaid, some long-term care benefits, such as personal care assistance or adult day care, may be available.
Level of care: Help with ADLs
2026 Colorado Medicaid Long-Term Care Eligibility for Seniors
Institutional / Nursing Home Medicaid*
Medicaid Waivers / Home and Community Based Services†
Regular Medicaid / Aged Blind and Disabled
*All of a beneficiary's monthly income, with the exception of a Personal Needs Allowance of $110.36 / month, Medicare premiums, and a Needs Allowance for a non-applicant spouse (if applicable), must be paid to the nursing home. This is called a Patient Liability.
†Based on one's living setting, a program beneficiary may not be able keep monthly income up to this level.
ℹIn Colorado, persons determined eligible for SSI are automatically approved for Medicaid. This includes long-term care via Regular Medicaid, given one meets the functional need requirements.
Explore Colorado Medicaid Programs
Compare programs, see caregiver pay rates, get step-by-step application guidance, and check your eligibility — all specific to Colorado.
Long-term care Medicaid guide
Eligibility · Caregiver pay · How to apply · 2026 data
Important: Rates vary — contact your state Medicaid office for current figures. This tool provides general guidance, not legal or financial advice.
Compare Medicaid Programs — Colorado
How the main LTC programs available in Colorado compare side by side.
| Program | Pay | Pay type | Tax-free? | Spouse OK? | Waitlist? |
|---|---|---|---|---|---|
| Consumer-directed HCBS | $16–20/hr | Hourly wage | No | Usually no | Often |
| Structured Family Caregiving (SFC) | Not in Colorado | Daily stipend | Yes | Usually no | Often |
| Personal Care Agreement | Market rate (from assets) | Private pay | No | Yes | No |
| VA Aid & Attendance | Up to $2,874/mo | Monthly pension | Yes | Yes | No |
Colorado Medicaid programs
HCBS Waiver
CDASS (Consumer Directed Attendant Support Services)
Sources: KFF (Jan 2026), medicaidplanningassistance.org (Feb 2026). Programs and rates change — verify with your state Medicaid office.
How Family Caregivers Get Paid Through Medicaid in Colorado
If you're a family member providing care, you may be able to get paid through Medicaid — often at rates comparable to a home care agency.
Consumer-directed care — hourly pay
Available in ColoradoHow it works: The person receiving care becomes the "employer" — they hire you and a fiscal intermediary handles payroll, taxes, and paperwork on their behalf. You receive a paycheck just like a regular job.
How to apply: HCPF · hcpf.colorado.gov
Personal Care Agreement — private pay from assets
Available to any familySources: KFF Medicaid Home Care Survey 2025 (Jan 2026), Careforth FAQ (Jan 2026), IRS Notice 2014-7.
How to Apply for Medicaid Long-Term Care in Colorado
What to expect when applying for LTC Medicaid and getting family caregiver pay set up in Colorado. The process typically takes 45–90 days from application to first paycheck.
Apply in Colorado: HCPF · hcpf.colorado.gov
Medicaid Eligibility Screener — Colorado
Answer 7 quick questions — we'll check the financial and care requirements for Colorado and explain what each one means.
What is the marital status of the person who needs care?
Medicaid looks at only the applicant's income and assets — but being married triggers special protections that let the healthy spouse keep significantly more money.
Sources
- CMS Medicaid — eligibility, HCBS waivers, and long-term services medicaid.gov/medicaid/eligibility
- CMS Medicaid — Home & Community-Based Services (HCBS) medicaid.gov/medicaid/home-community-based-services
- Social Security Administration — SSI Federal Benefit Rate (2026 figures) ssa.gov/oact/cola/SSI.html
- CMS — Spousal Impoverishment standards (CSRA & MMMNA) medicaid.gov/medicaid/eligibility/spousal-impoverishment
- CMS — Estate Recovery and the 5-year lookback period medicaid.gov/medicaid/eligibility/estate-recovery
- IRS Notice 2014-7 — Tax treatment of Medicaid caregiver payments irs.gov/individuals/certain-medicaid-waiver-payments-may-be-excludable-from-income
Educational guidance only — not legal or financial advice. Your state Medicaid office determines actual eligibility.
Key Rules at a Glance
- Nearly all income that a Medicaid applicant receives is counted towards the income limit, including employment wages, alimony, pension payments, SSDI, railroad retirement annuities, SSI, IRA withdrawals, and stock dividends.
- Nationally, Holocaust restitution payments are not counted as income.
- In CO, the VA Aid and Attendance, which is above and beyond the Basic VA Pension, does not count.
- When only one spouse applies for Nursing Home Medicaid or a Medicaid Waiver, only the applicant's income is counted.
- The non-applicant spouse may be entitled to a Minimum Monthly Maintenance Needs Allowance (MMMNA) of $2,643.75 (eff. 7/1/25 – 6/30/26).
- In Colorado, a non-applicant spouse can further increase their Spousal Income Allowance if housing and utility costs exceed a 'shelter standard' of $793.13 / month (eff. 7/1/25 – 6/30/26).
- A Spousal Income Allowance cannot push a non-applicant's monthly income over $4,066.50 (Maximum Monthly Maintenance Needs Allowance).
- For Regular Medicaid, the income of both spouses is counted. There is no MMMNA for the non-applicant spouse.
- Countable assets include cash, stocks, bonds, investments, cryptocurrency, bank accounts, and real estate in which one does not reside.
- In Colorado, IRA's and 401K's are counted.
- Non-countable (exempt) assets include personal belongings, household furnishings, an automobile, irrevocable burial trusts, and generally one's primary home.
- All assets of a married couple are considered jointly owned regardless of which program one applies for.
- The Community Spouse Resource Allowance (CSRA) allows the non-applicant spouse to keep up to $162,660 of the couple's countable assets (2026). There is no CSRA for Regular Medicaid.
- The home is automatically exempt if the applicant's spouse, child under 21, or permanently blind or disabled child (of any age) lives in it.
- If this is not the case, there is a home equity interest limit of $1,097,000 (in 2026).
- Home equity is the value of the home minus any outstanding debt against it. Equity interest is the amount of equity owned by the applicant.
- If neither the applicant nor qualifying family live in the home, the applicant must have Intent to Return.
- There is no home equity interest limit for Regular Medicaid.
- The home is NOT exempt from Medicaid's Estate Recovery Program (MERP). After a beneficiary's death, the state attempts reimbursement of care costs through the deceased's estate.
- Without proper planning strategies, the home will be used to reimburse Medicaid rather than going to family as inheritance.
Colorado uses the higher home equity interest limit of $1,097,000 (2026), compared to the lower option of $730,000 used by many states.
- Colorado has a 60-month (5-year) Look-Back Period for Nursing Home Medicaid and Medicaid Waivers that immediately precedes the application date.
- During the look-back, Medicaid checks all asset transfers (including those by one's spouse) to ensure none were gifted or sold under fair market value.
- Violations are penalized with a Penalty Period of Medicaid ineligibility.
- The Look-Back Rule does NOT apply to Regular Medicaid.
- The U.S. Federal Gift Tax Rule ($19,000 per recipient in 2026) does not extend to Medicaid eligibility — gifting under this rule still violates the Look-Back Period.
- MMMNA: $2,643.75 · CSRA: $162,660 · CSRA Min: $32,532
- When only one spouse applies for Nursing Home Medicaid or a Medicaid Waiver, only the applicant's income is counted.
- The non-applicant spouse may receive a Minimum Monthly Maintenance Needs Allowance (MMMNA) of $2,643.75 (eff. 7/1/25 – 6/30/26).
- The Spousal Income Allowance can increase if housing/utility costs exceed the 'shelter standard' of $793.13 / month, but cannot exceed $4,066.50 / month (Maximum MMNA).
- The Community Spouse Resource Allowance (CSRA) allows the non-applicant spouse to keep up to $162,660 of the couple's countable assets.
- For Regular Medicaid, both spouses' income is counted and there is no MMMNA or CSRA.
- Colorado has a unique asset rule for married couples in nursing homes: $3,000 if in separate rooms, $4,000 if in a shared room.
- Qualified Income Trusts (QIT's) — Called Income Trusts in Colorado, these irrevocable trusts allow Nursing Home Medicaid and Medicaid Waiver applicants with income over the limit to become income-eligible. In CO, the Medicaid applicant can be the trustee, given a successor trustee is named. Upon death or disenrollment, remaining funds must be paid to the Colorado Department of Health Care as reimbursement.
- Asset Spend-Down — Spend excess assets on non-countable items such as home improvements, home modifications (wheelchair ramps, roll-in showers, stair lifts), vehicle modifications, prepaying funeral/burial expenses, and paying off debt. Keep documentation as proof Medicaid's Look-Back Rule was not violated.
- Medicaid Planning — Work with a Medicaid Planning Professional to become eligible and protect your home from Medicaid's Estate Recovery Program.
Colorado Medicaid Programs
Elderly, Blind and Disabled (EBD) Waiver
Services and supports are provided at home and in assisted living facilities to promote independent living and prevent premature nursing home placements. Benefits include adult day care, home modifications, non-medical transportation, respite care, and personal care assistance and homemaker services in assisted living.
Program of All-Inclusive Care for the Elderly (PACE)
Combines the benefits of Medicaid, including long-term care services, and Medicare into one program. Additional benefits such as dental and eye care may be available.
Money Follows the Person (MFP)
A federal program that helps institutionalized persons who are eligible for Medicaid to transition back home or into the community.
Community First Choice Program (CFC)
A statewide Medicaid program that began July 1, 2025, offering long-term services and supports including personal care services, personal emergency response systems, home delivered meals, and protective oversight.
How to Apply
- Apply online at Colorado PEAK
- Call the Colorado Department of Human Services at 1-800-221-3943
- Apply in-person at your county Department of Human Services' office or Application Assistance Site
- Contact your local Single Entry Point Agency / Case Management Agency for application assistance
Colorado Medicaid applicants should be certain all eligibility requirements are met prior to applying. For seniors over the income and/or asset limits, Medicaid planning can be invaluable.
More Colorado Long-Term Care Resources
Take the Next Step for Colorado Medicaid
Find out if you qualify or see how Medicaid fits into your overall long-term care plan.
Sources & references
Verified May 2026- Centers for Medicare & Medicaid Services — Long-Term Services & Supports
- Administration for Community Living — State Medicaid Agencies
- Centers for Medicare & Medicaid Services — Medicaid Eligibility
- American Council on Aging — About Medicaid Planning Assistance
- Colorado Department of Health Care Policy & Financing — Colorado Medicaid — Official site