Colorado

Colorado enforces a 60-month (5-year) look-back period on asset transfers. Any transfers for less than fair market value during this period may incur penalties.

Penalty periods are calculated by dividing the amount transferred by the average monthly cost of nursing home care in Colorado (approximately $9,479.95 in 2024). For example, a $90,000 transfer could result in a 10-month penalty period during which Medicaid will not cover long-term care costs

Paying off debts, making home improvements, purchasing exempt assets (e.g., prepaid funeral plans), or using funds for care-related expenses

Income Cap: For 2024, the income limit for an individual is $2,829 per month. For a married couple, if both are applying, it’s $5,658 per month.

Asset Limit: Individuals can have up to $2,000 in countable assets. For married couples with one spouse applying, the non-applicant spouse can keep up to $154,140

Irrevocable Trusts: Assets placed in these trusts are excluded from Medicaid eligibility calculations

Spousal Protections: The Community Spouse Resource Allowance (CSRA) allows the healthy spouse to retain a portion of the couple’s assets, typically up to $148,620

Annuities: Convert assets into a stream of income, which may be excluded from asset calculations.