Long-Term Care Medicaid in Colorado: 2026 Guide

In Colorado, Medicaid is called Health First Colorado. It is run by the Department of Health Care Policy and Financing (HCPF), and eligibility is decided by your county department of human or social services. Long-Term Care Medicaid can pay for nursing home care and for care at home through the Elderly, Blind and Disabled (EBD) Waiver, Community First Choice and PACE. Colorado is an income-cap state with a higher home equity limit. This guide explains the 2026 rules in plain language.

At a glance: Colorado 2026 figures

Figures last updated for 2026. Sources are listed at the end of this page.

Figures change periodically. Double-check current amounts with Health First Colorado (HCPF) before relying on them.

What Long-Term Care Medicaid covers in Colorado

Nursing home care. Health First Colorado pays for care in a certified nursing facility. You pay most of your income toward the cost each month (your “patient payment”), and Medicaid pays the rest.

Elderly, Blind and Disabled (EBD) Waiver. This home and community-based waiver is for people 65 and older with a functional impairment, people who are blind, and adults 18 to 64 with a physical disability or HIV/AIDS, who need long-term services to stay in the community. Services can include personal care, homemaker help, adult day services, respite, home changes, emergency response systems and care in an alternative care facility (assisted living). Waivers have their own rules and sometimes have waitlists.

Community First Choice (CFC). Colorado also offers Community First Choice services, such as personal care and homemaker help, for people who qualify.

PACE (Program of All-Inclusive Care for the Elderly). For people 55 and older in a PACE service area who need a nursing facility level of care.

Assisted living. Medicaid does not pay room and board in assisted living. The EBD Waiver can pay for care services in an approved alternative care facility.

Who qualifies

A person generally must:

• be 65 or older, or blind or disabled;
• live in Colorado and be a U.S. citizen or qualified non-citizen;
• need a nursing facility level of care. Since July 1, 2024, one local Case Management Agency (CMA) in each area handles intake, the needs assessment and service planning, whatever waiver you qualify for;
• meet the income and asset rules below, as decided by your county.

Income rules

Colorado is an income-cap state for long-term care. In 2026, the limit is $2,982 a month in gross income.

If your income is above $2,982, you may still qualify by setting up an income trust (a Qualified Income Trust or Miller trust). Income above the cap is placed in the trust each month and used toward the cost of care. HCPF has rules for how the trust must be set up.

Once you are on Health First Colorado in a nursing home, most of your income goes to the facility. You keep a personal needs allowance of $110.36 a month, and money can be set aside for a spouse at home and for health insurance premiums.

Asset rules

In 2026, a single applicant can have up to $2,000 in countable resources. For a couple who both need care, the limit is $3,000.

Countable resources include cash, bank accounts, CDs, stocks, bonds, mutual funds, retirement accounts that can be cashed in, life insurance cash value above set amounts and real estate other than the home.

Usually exempt:

• Your home (equity up to $1,130,000) if you live there or plan to return, or a spouse or dependent relative lives there
• One vehicle
• Household goods and personal belongings
• Burial plots and limited burial funds, within HCPF rules

Spousal protections

Colorado gives the spouse at home the federal maximum amount.

• Assets: The spouse at home can keep a Community Spouse Resource Allowance of $162,660 in 2026, plus the home, one car and belongings. With the applicant’s own $2,000, the couple can keep up to $164,660 in countable resources.
• Income: The spouse at home keeps their own income. If it is below $2,705 a month (from July 1, 2026), part of the applicant’s income can go to them, plus extra for high housing costs, up to $4,066.50 a month.

Look-back and penalties

When you apply, Colorado looks back at the 60 months (5 years) before the application date. This is called the look-back period. The state checks whether you, or your spouse, gave away money or property, or sold something for less than it was worth, during that time.

Common examples of transfers that can cause a problem:

• Cash gifts to children or grandchildren, even small yearly gifts. (A gift that is fine for federal gift-tax purposes can still count for Medicaid.)
• Adding a child’s name to a house deed or bank account in a way that gives them part ownership.
• Selling a house or car to a relative for much less than it is worth.
• Paying a family member for care without a written agreement made at the time.

Some transfers are allowed, such as transfers between spouses, or transferring a home to a child who is blind or disabled.

How the penalty works. If the state finds a transfer that is not allowed, it does not deny Medicaid forever. Instead, it sets a penalty period: a stretch of time when Medicaid will not pay for long-term care. The state divides the amount given away by the penalty divisor ($10,814 a month).

Example: Suppose you gave your son $50,000 three years before applying. $50,000 divided by $10,814 is about 4.6 months without Medicaid payment for long-term care.

The penalty period starts only once you have applied, are otherwise eligible, and are in (or need) long-term care. This is why gifts made while someone is healthy can still matter years later. If a gift is returned in full, the penalty can be removed.

Estate recovery in Colorado

Colorado’s estate recovery program is run by HCPF.

• What is recovered: Medicaid paid for services received at age 55 or older, and for some people of any age in a nursing facility.
• When it is put off: federal rules prevent recovery while a spouse is alive, or if there is a child under 21 or a child who is blind or disabled.
• Hardship waivers: HCPF can waive or put off recovery in some situations. Ask HCPF for the current rules.
• Family members and personal representatives can contact HCPF Estate Recovery with questions.

How to apply

• Online: PEAK, Colorado’s benefits website
• In person or by mail: at your county department of human or social services
• For the EBD Waiver or CFC: if you already have Health First Colorado, contact your local Case Management Agency to start the waiver application. HCPF has a CMA directory by county. If you do not yet have Medicaid, apply first.

After you apply. Your county will send you a written notice saying whether you qualify, from what date, and how much of your income goes toward your care each month. If you disagree with a decision, you have the right to ask for a fair hearing. The notice explains how to ask and the deadline for asking. Keep copies of everything you send and receive, and report changes in income, assets or address when they happen.

Gather what you can before you apply. The caseworker may ask for:

• Photo ID, Social Security card and Medicare card
• Proof of age and of U.S. citizenship or immigration status
• Proof that you live in the state (for example, a utility bill or lease)
• Proof of all income: Social Security award letter, pension statements, annuity statements
• Bank, credit union and investment statements (often for the full 60-month look-back period)
• Deeds, property tax bills and the value of any real estate
• Life insurance policies (showing cash value) and prepaid funeral or burial contracts
• Vehicle titles
• Health insurance cards and long-term care insurance policies
• Power of attorney or guardianship papers, if someone is applying for you
• For a spouse at home: their income and assets too, since both spouses’ assets are counted at the start

If you cannot find a document, apply anyway and tell the caseworker. They can explain what else is accepted.

Free public help in Colorado

• HCPF and your county human or social services department: Health First Colorado applications and eligibility.
• Case Management Agencies: intake, assessment and service planning for home and community-based services.
• Area Agencies on Aging and ADRCs: local information on long-term care options.
• Colorado SHIP (State Health Insurance Assistance Program): free Medicare counseling, through the Division of Insurance.
• Colorado Long-Term Care Ombudsman Program: free advocates for residents of nursing homes and assisted living.

Recent and upcoming changes

A 2025 federal law (Public Law 119-21) makes two changes that affect Long-Term Care Medicaid in every state, including Colorado:

• Retroactive coverage gets shorter on January 1, 2027. Today, Medicaid can pay bills from up to 3 months before the month you apply, if you would have qualified then. For applications from January 1, 2027, this window shrinks to 2 months for older adults and people with disabilities. In plain terms: from 2027, it matters more to apply soon after care starts, so that earlier bills are not left unpaid.
• Home equity cap on January 1, 2028. States will no longer be able to set a home equity limit above $1,000,000 (except for some farm property). Colorado’s 2026 home equity limit is $1,130,000, which is above the new cap. Colorado will have to lower its limit to no more than $1,000,000 by January 1, 2028.

The federal amounts that change each year (for example, the allowances for a spouse at home) will be updated on this page for 2027 once they are published.

State programs

Each program below has its own page with who qualifies, services, how to apply and waiting lists:

• Colorado Elderly, Blind and Disabled (EBD) Waiver
• Colorado Community First Choice (CFC)

Frequently asked questions

What is the EBD Waiver? It is Colorado’s main Medicaid program for long-term care at home for older adults and adults with physical disabilities. Your local Case Management Agency handles the application and planning.

My income is over $2,982 a month. Can I still qualify? You may, with an income trust. Income above the cap goes into the trust each month and is used toward your care.

How much can my spouse keep? In 2026, up to $162,660 in assets, plus the home, a car and belongings, and income of at least $2,705 a month.

Is Colorado’s home equity limit going to change? Yes. Colorado’s 2026 limit is $1,130,000, and federal law requires it to drop to no more than $1,000,000 from January 1, 2028.

How long is the penalty for a gift? Divide the gift by $10,814 to get the number of months. A $20,000 gift would mean about 1.8 months without Medicaid payment for long-term care.

Will the state take my home after I die? HCPF can seek repayment for Medicaid paid after age 55, which can include the home. Recovery is put off while a spouse or a young or disabled child survives, and hardship waivers exist.

Figures change periodically. Double-check current amounts with Health First Colorado (HCPF) before relying on them.

Sources

• HCPF, OM 25-073, 2026 Social Security cost-of-living adjustments
• HCPF, OM 26-032, 2026 MMMNA
• Colorado training, Non-MAGI and LTC income and resource limits (Jan. 2026)
• HCPF, Elderly, Blind, and Disabled Waiver
• HCPF, HCBS Waivers
• HCPF, CMA and CCB Agency Directory
• PEAK
• CMS, 2026 SSI and spousal impoverishment standards
• Public Law 119-21 (2025)

Last updated for 2026. General information only, not legal or financial advice. Medicaid Answers is a free educational resource published by Medicaid Answers Foundation.