Colorado Medicaid Asset Limits

Quick answer: In 2026, Colorado's Medicaid asset limit for long-term care is $2,000 for a single applicant, and the basic couple limit is $3,000. The income cap is $2,982 a month; above that, an income trust can restore eligibility if income is under your region's private-pay nursing facility rate.

How Colorado's asset and income tests work

Health First Colorado, the state's Medicaid program, uses two separate tests for long-term care: one for resources (what you own) and one for income (what comes in each month). Both apply to nursing facility care, home and community-based services (HCBS) and PACE.

The resource test: a single applicant can have no more than $2,000 in countable resources, and the basic limit for a couple is $3,000. When only one spouse needs care, the spousal impoverishment rules protect more for the spouse who stays home: in 2026 the Community Spouse Resource Allowance can be as much as $162,660. Whether a home, car, burial fund, retirement account or joint account counts depends on the specific rule, so don't rely on a generic list.

The income test: Colorado is an income-cap state. For 2026 the limit is $2,982 a month in gross income, which is 300% of the SSI benefit rate. Income above that doesn't automatically disqualify you. If your gross income is over $2,982 but under the average private-pay nursing facility rate for your region, you can qualify by setting up a Colorado income trust (also called a Miller trust or Qualified Income Trust). The four regional ceilings for 2026 are:

• Region I (Adams, Arapahoe, Boulder, Broomfield, Denver, Jefferson): $11,522.44
• Region II (including Douglas, Larimer, Weld and Summit): $10,633.36
• Region III (including El Paso, Pueblo, Fremont and Teller): $9,780.17
• Region IV (including Mesa, Garfield, Eagle and La Plata): $11,322.60

How an income trust works: it's an irrevocable trust that can hold only the applicant's income, never savings. Each month, the income over the cap is deposited into the trust's bank account. The trust then pays allowed costs, such as the person's share of the cost of care. When the trust ends, what's left goes to the state up to the amount Medicaid paid. HCPF publishes an official income trust form with instructions.

In a nursing facility, most of a resident's income goes toward the cost of care. The resident keeps a personal needs allowance of $110.36 a month in 2026.

Example

Helen, 84, lives in Pueblo County (Region III). Her Social Security and pension total $3,400 a month, and she has $1,800 in checking. Her income is over the $2,982 cap but under Region III's $9,780.17 ceiling, so she can qualify for nursing facility Medicaid with an income trust. Each month, at least the $418 over the cap is deposited into the trust account, and the trust's funds go toward her care under the trust's rules.

Illustrative example; names and figures are hypothetical.

Common mistakes

• Using net income instead of gross. The $2,982 test uses gross income, before Medicare premiums or tax withholding.
• Signing the trust but not depositing the excess income every month.
• Applying the $3,000 couple figure when only one spouse needs care. The spousal rules give the at-home spouse a separate, larger protection.
• Giving money to family to get under $2,000. Gifts within the 60-month look-back can cause a penalty period.

Questions and answers

What is the Colorado Medicaid asset limit for long-term care in 2026?

$2,000 in countable resources for a single applicant. The basic couple limit is $3,000, and the at-home spouse of an applicant can keep up to $162,660.

Do I need an income trust in Colorado?

Only if your gross monthly income is over $2,982. If it's above that but below your region's private-pay rate, an income trust lets you qualify.

What if my income is above my region's private-pay rate?

Then an income trust doesn't help. HCPF's income trust form applies only when gross income is below the average private-pay nursing facility rate for your region.

How much does a nursing home resident keep each month?

The 2026 personal needs allowance is $110.36 a month. Most of the rest of the resident's income goes toward the cost of care.