Colorado Medicaid Spousal Impoverishment 2026: CSRA Guide

Colorado Medicaid spousal impoverishment rules protect the at-home spouse's assets and income when the other spouse enters long-term care. In 2026, that spouse keeps the couple's countable assets up to $162,660, because Colorado awards the maximum allowance outright rather than dividing the couple's assets in half.1 This guide explains exactly how those protections are calculated under Health First Colorado.

What Colorado Medicaid Spousal Impoverishment Rules Cover

When one spouse applies for long-term care coverage under Health First Colorado, the couple's combined finances are reviewed against strict limits. Without legal protections, the spouse who stays home could be forced to spend down nearly all shared assets before coverage begins. Federal Medicaid spousal impoverishment rules, codified at 42 U.S.C. 1396r-5, prevent that outcome by shielding a defined portion of the couple's resources for the community spouse.2

Colorado follows these federal rules through the Department of Health Care Policy and Financing (HCPF), which administers coverage for nursing facility and home- and community-based waiver services. The two core protections are the Community Spouse Resource Allowance (CSRA) on assets and the Minimum Monthly Maintenance Needs Allowance (MMMNA) on income.1

How Much Can Your Spouse Keep in Assets? (The CSRA)

The Community Spouse Resource Allowance determines how much of the couple's combined countable assets the at-home spouse may keep.

Calculating the CSRA. HCPF takes a snapshot of the couple's combined countable assets on the date the applicant is first institutionalized. That date is typically the day of nursing-facility entry or the start of a waiver assessment, and in many cases it dates back to a hospital admission that led directly into long-term care. Colorado's own rule, 10 CCR 2505-10 § 8.100.7.M, then provides that "the CSRA is the largest of the following amounts: a. The total resources of the couple but no more than the current maximum allowance," or a court-ordered support amount, or an allowance increased through a fair hearing.1 In plain terms, the community spouse keeps the couple's countable assets up to the 2026 maximum of $162,660.1

• Snapshot total at or below $162,660. The at-home spouse keeps all of it.1
• Snapshot total above $162,660. The at-home spouse keeps $162,660, and the balance is treated as available to the applicant.1

This is where general explanations of spousal impoverishment mislead Colorado families. Federal law allows a state to protect only half the couple's assets, with a minimum of $32,532 as the floor for a small half-share, and most states do it that way.2 Colorado's formula contains neither step, so nothing here is ever cut in half.1

As a practical illustration: a couple with $90,000 in countable assets leaves the community spouse the full $90,000, not $45,000. A couple with $20,000 leaves the community spouse the full $20,000. A couple with $500,000 leaves the community spouse $162,660, because the maximum caps the allowance, and the balance (beyond the applicant's $2,000 allowed amount) must be spent down.1

Countable vs. exempt assets. Not everything the couple owns counts toward the snapshot. Assets that are exempt and do not count include:

• The primary home, as long as the community spouse resides there, subject to the home-equity limit below
• One vehicle used for the household's transportation
• Household furnishings and personal effects
• Prepaid irrevocable burial contracts

Countable assets include savings and checking accounts, certificates of deposit, stocks, bonds, and most retirement accounts not yet in pay status.1

How Much Income Is the At-Home Spouse Guaranteed? (The MMMNA)

The MMMNA is the income counterpart to the CSRA. It sets the floor below which the community spouse's monthly income cannot fall, so that the couple's income is not entirely consumed by the cost of the institutionalized spouse's care.

How the MMMNA range works. The federal MMMNA floor is $2,705.00 per month (effective July 1, 2026 through June 30, 2027; this floor resets each July) and the ceiling is $4,066.50 per month (effective January 1, 2026). Colorado applies these federal figures directly.2

If the community spouse already has income at or above the floor from their own sources (Social Security, a pension, investments), no income is diverted from the Medicaid recipient to the at-home spouse. If the community spouse's own income falls below $2,705.00, Colorado rules allow a portion of the institutionalized spouse's income to be redirected to close the gap.2

The excess-shelter adjustment. When deciding whether a community spouse qualifies for an MMMNA above the floor, HCPF considers whether the at-home spouse's shelter costs (rent or mortgage, property taxes, homeowner's insurance, and a utility allowance) exceed a federal excess-shelter standard. If they do, the excess is added to the base allowance, raising the MMMNA up to the $4,066.50 ceiling. Because that shelter standard is a federal figure that resets periodically, confirm the current amount with HCPF before relying on a specific number.2

Requesting a higher allowance. If the MMMNA that HCPF determines does not cover the community spouse's reasonable living expenses, they can request a fair hearing and submit documentation of actual costs. An elder-law attorney familiar with Colorado HCPF practice can help build that case.

What If Your Income Is Over the Limit? Colorado's Income Trust

Colorado is an income-cap state. The 2026 gross income limit for long-term care Medicaid is $2,982 per month, equal to 300% of the Supplemental Security Income (SSI) Federal Benefit Rate of $994. If the applicant's gross income exceeds this cap, they cannot qualify through a simple spend-down.1

Instead, the applicant must establish an income trust (Colorado's term for a Qualified Income Trust, also called a Miller Trust) and submit it to HCPF, which must be named as the remainder beneficiary. Each month, income above the $2,982 cap is deposited into the trust, and the trust funds are applied toward the cost of care after allowances are paid. This is a legal document that must be drafted correctly and funded every month; without it, an over-income applicant cannot qualify.1

The community spouse's own income does not count against the applicant's income cap.

Home Equity and Property

The primary home is generally exempt while the community spouse lives in it. The 2026 federal home-equity limit starts at $752,000, and a state may elect a higher amount, up to $1,130,000.3 Colorado applies the $1,130,000 maximum. A home with equity below that figure is fully protected during the community spouse's lifetime.1

If the home's equity exceeds that limit, the applicant is not eligible for long-term-care assistance. In practice, most Colorado families do not have homes near that threshold, but it matters for those who do.3

After the recipient passes away, Colorado's estate recovery program may seek reimbursement for the cost of care from the estate, but federal law prohibits any recovery action while the community spouse is still living. Other exempt assets (one vehicle, household goods, and prepaid burial plans) are not counted in either the CSRA calculation or the applicant's asset limit.1

How to Apply for Colorado Medicaid Spousal Impoverishment Protection

The application involves a functional assessment (the applicant must need nursing-facility-level care) and a full financial review. The community spouse's protected amounts are fixed at the snapshot date, so gathering documentation before you apply saves time. Bring:

1. 60 months of bank and financial statements. Colorado applies a 60-month look-back, so HCPF reviews five years of records for uncompensated transfers.1
2. Proof of home equity. A recent property-tax valuation or appraisal, plus mortgage statements.
3. Income documentation. Social Security award letters, pension statements, and any other income for both spouses.
4. Functional-assessment records. Medical documentation supporting the need for nursing-facility-level care, required for HCBS waiver services.

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The information on Brevy.com is for educational purposes only and is not a substitute for professional legal, financial, or medical advice. Rules vary by state and program and change frequently. Always verify with the relevant agency or a qualified professional. Brevy is not a law firm, financial advisor, or healthcare provider.