Colorado's Medicaid Program for Long-Term Care
Colorado's Medicaid program is administered by the Colorado Department of Health Care Policy and Financing (HCPF). The program that covers long-term care services — including assisted living, in-home care, and nursing home care — operates through Colorado Medicaid Home and Community Based Services (HCBS).
Does Medicaid Cover Assisted Living in Colorado?
Yes — HCBS Medicaid can cover care services in assisted living residences. Room and board are not covered by Medicaid.
2026 Eligibility Requirements
To qualify for Colorado Medicaid long-term care coverage, you must meet both financial requirements and a medical need requirement. Here are the 2026 figures:
| Requirement | 2026 Limit | Notes |
|---|---|---|
| Income limit (single) | $2,901/month | Almost all income counted |
| Asset limit (single) | $2,000 | Countable assets only |
| Home equity limit | $688,000 | Primary home often exempt |
| Community Spouse Resource Allowance | $148,620 | Protects non-applicant spouse |
| Look-back period | 60 months (5 years) | Reviews asset transfers |
| Primary home | Exempt | If applicant or spouse lives there |
| One vehicle | Exempt | Regardless of value |
Medical Eligibility
In addition to meeting financial requirements, applicants must demonstrate a need for a Nursing Facility Level of Care (NFLOC). This means the applicant requires the level of care typically provided in a nursing home — assessed through their ability to perform Activities of Daily Living (ADLs) such as bathing, dressing, eating, toileting, and transferring.
Waitlist Status
Waitlist Information
Colorado HCBS waiver programs have waitlists. The HCBS-SLS and HCBS-DD waivers in particular can have significant wait times. Apply as early as possible — your place on the waitlist is determined by your application date.
Colorado-Specific Rules to Know
Key Colorado Details for 2026
Colorado has multiple HCBS waiver programs including the Elderly, Blind and Disabled (EBD) waiver and the Supported Living Services (SLS) waiver. The EBD waiver is the primary program for seniors needing long-term care in assisted living settings.
The 5-Year Look-Back Period
Colorado enforces a 60 months (5 years) look-back period for Medicaid long-term care programs. During this window, Medicaid reviews any assets you transferred or gave away. Gifts or transfers below fair market value — even those under the annual IRS gift tax exclusion — can trigger a penalty period of Medicaid ineligibility.
This is why Medicaid planning — done well in advance of needing care — is so important. An elder law attorney can help you structure assets legally to protect family wealth while establishing Medicaid eligibility.
What HCBS Medicaid Covers and Doesn't Cover
Covered in assisted living:
- Personal care assistance (bathing, dressing, grooming)
- Medication management and administration
- Nursing assessments and skilled nursing visits
- Case management and care coordination
- Some transportation to medical appointments
Not covered:
- Room and board (rent, meals, housing)
- Amenities and activities fees
- Personal clothing and items
How to Apply in Colorado
- Assess eligibility first — Use Dorthea's free assessment to understand your financial eligibility and care level qualification before applying
- Consult an elder law attorney — Especially if assets exceed the limit or if asset transfers have occurred in the past 5 years
- Apply online or by phone — Visit PEAK (Program Eligibility and Application Kit) or call 1-800-221-3943
- Gather documentation — Bank statements (60 months), income records, property records, medical records, and ID
- Complete functional assessment — A state assessor will evaluate care level need
- Find a participating facility — Not all assisted living communities accept Medicaid. Verify before committing
Processing typically takes 45–90 days. Benefits can be retroactive in some cases.
If You Don't Qualify Right Away
- Qualified Income Trust (Miller Trust) — If income is above the limit, a properly drafted QIT can redirect excess income and restore eligibility
- Medicaid spend-down — Using assets on care costs until you reach the asset limit
- Exempt asset conversion — Converting countable assets into exempt ones (home repairs, prepaid funeral, paying off debt)
- VA Aid & Attendance — If the applicant is a veteran or surviving spouse, VA benefits can provide significant monthly support. See our VA Benefits guide →
- Long-term care insurance — If a policy was purchased previously, review coverage carefully
Dorthea Can Help You Navigate Colorado's Medicaid System
Dorthea's free assessment identifies your Colorado Medicaid eligibility pathway, surfaces relevant programs, and flags the look-back timeline — so you can start planning before a crisis forces a rushed decision.