What is the medicaid income limit for 2022 in colorado

What Are The Income Rules In Colorado On Medicaid?

Do you think you have too many assets to qualify for Medicaid assistance with nursing home costs? Think again.

At The Hughes Law Firm, P.C., in Denver, we help people just like you qualify for Medicaid benefits as well as provide assistance with many issues of elder law, VA benefits and estate planning. Let our lawyers help you understand how Colorado’s Medicaid income rules work.

The Truth About Calculating Assets For Medicaid Eligibility

In Colorado, the general rule is that you are not eligible for Medicaid if you have more than $2,000 in countable assets, including investments and bank accounts. While this number may seem unrealistically low, it is important to remember that there are several assets you don’t have to include when calculating your total countable assets.

There are a number of exemptions when applying for Medicaid. These exempt assets include:

• Home: Your home is generally considered an exempt asset as long as it is your principal residence and your equity does not exceed $603,000.
• Vehicle: You can also exempt one car if the car is used for employment, used to obtain medical treatment or is handicap-equipped.
• Personal property: While personal property held specifically for investment ― such as some artwork ― may not be exempt, other personal property is, such as clothing, furniture, wedding rings and many appliances.
• Life insurance: As long as the total face value of all of your life insurance policies does not exceed $1,500, the policies are exempt no matter the cash surrender value. However, if the face value does exceed $1,500, then the cash surrender value is considered countable.
• Burial insurance: While revocable burial insurance is exempt up to $1,500, irrevocable burial insurance is always exempt regardless of its value. In addition, the value of your burial plot and grave markers may also be exempt.
• Retirement accounts: Retirement accounts are a little more complex in that they may be considered countable assets. However, their value can be reduced if you incur taxes and other penalties when withdrawing funds.

Keep in mind that the income and asset rules above are merely a basic outline of how Medicaid asset limitations work, and they can change from year to year. At The Hughes Law Firm, P.C., we will help you understand your options, including:

• Gifts
• Annuities
• Support for the stay-at-home spouse
• Planning for long-term care

What If I Own Too Much?

If you own too much to qualify for Medicaid, you may be tempted to simply give your assets away to friends and loved ones. However, there are specific Medicaid rules that govern how and when you can gift your assets, and if you fail to follow these rules, you can face severe penalties.

But, don’t fret. With proper Medicaid planning, you may be able to make yourself eligible for Medicaid sooner ― and preserve most of your assets for your family in the process.

Free Initial Consultation ~ No Obligation

To learn more, contact the experienced attorneys and legal professionals at The Hughes Law Firm. You get a free 20-minute phone consult to see if we can help. You can reach us online, or call us at (303) 758-0680. The longer you wait to prepare, the more it may cost you, so contact us today. We have offices in Denver, Fort Collins and at a number of additional locations throughout Colorado.

Review additional information about Medicaid by going to our Medicaid guide.

Related Articles

• Elder Law
• Guide To Medicaid
• Is Medicaid Planning Legal And Ethical?
• Life Care Planning
• Protecting Assets From Nursing Homes
• Medicaid FAQs
• Medicaid Planning With Annuities In Colorado
• Rules On Gift Transfers In Colorado
• Spousal Impoverishment Protections In Colorado
• Elder Law, Medicaid & Veterans’ Benefits

Look at income-based Health First Colorado (Medicaid) if:

• You are less than 65 years old

• You don’t qualify for SSI or Medicare

• You are a U.S. citizen or eligible immigrant, and

• Your household has low to moderate income.

Is It Right for You?

Health First Colorado (Medicaid) is government-funded health coverage for people in certain situations. You may qualify if you:

• Have low to moderate income, no matter how much you have in resources or whether you have a disability. Income-based Health First Colorado (Medicaid) is explained on this page.
• Get Supplemental Security Income (SSI) benefits or qualify for SSI’s 1619(b) rule, which helps people who used to get SSI. In either case, you automatically get Health First Colorado (Medicaid) coverage and don’t need to worry about the rules discussed here. Learn more in DB101’s SSI article.
• Have low income, low resources, and a disability. Learn more about disability-based Health First Colorado (Medicaid).
• Have a disability and work, even if your income is higher. Learn more about the Health First Colorado Buy-In Program For Working Adults With Disabilities (Medicaid Adult Buy-In).

Answer the questions on this page to see if you might qualify for income-based Health First Colorado (Medicaid). If so, it’s probably your best health coverage option because it doesn’t usually have a premium, the copayments for services are generally lower than copayments required by private plans, and Health First Colorado (Medicaid) covers more services than most private plans. Also, if you qualify for Health First Colorado (Medicaid), you cannot get government help paying for an individual plan on Connect for Health Colorado.

Do You Meet the Basic Requirements for Income-Based Health First Colorado (Medicaid)?

To qualify for income-based Health First Colorado (Medicaid), you must:

• Be under 65 years old
  • You can be 65 or older if you are the parent or caretaker of a child.
• Not qualify for Medicare
  • You can be on Medicare if you are the parent or caretaker of a child or are pregnant.
• Be a U.S. citizen or meet specific noncitizen requirements

If you are under 65, do not qualify for Medicare, and are either a U.S. citizen or a noncitizen who qualifies, income-based Health First Colorado (Medicaid) might cover you.

Health First Colorado (Medicaid) Rules for Immigrants:

• Undocumented immigrants do not qualify for full Health First Colorado (Medicaid) coverage, but they may qualify for Emergency Health First Colorado (Medicaid).
• Most immigrants who have been lawfully present for less than five years do not qualify for full Health First Colorado (Medicaid) coverage. However, they may qualify for private coverage subsidized by the government.
• Immigrants who have been lawfully present for five years or longer and some other noncitizens who meet specific noncitizen requirements qualify for the same programs that U.S. citizens can get.

Is Your Income Low Enough for Income-Based Health First Colorado (Medicaid)?

These are the main income rules for income-based Health First Colorado (Medicaid):

• If your family’s income is at or under 138% of the Federal Poverty Guidelines (FPG) ($18,754 per year for an individual; $38,295 for a family of four), you may qualify.
• If you are 18 or younger and your family’s income is at or under 260% of FPG ($72,150 per year for a family of four), you may qualify for Child Health Plan Plus (CHP+).
• If you are pregnant and your family’s income is at or under 260% of FPG ($72,150 per year for a family of four), you may qualify. The unborn baby is counted as a family member.

Income-based Health First Colorado (Medicaid), sometimes called "Medicaid expansion," is based on your Modified Adjusted Gross Income (MAGI), which includes most earned and unearned income. However, some income is not counted, including Supplemental Security Income (SSI) benefits, growth of the investments in an ABLE account, and some contributions to retirement accounts. Learn more about what types of income affect income-based Health First Colorado (Medicaid) eligibility.

Note: There are no limits to how much money or other resources you can have for income-based Health First Colorado (Medicaid).

Health Coverage Income Limits for Your Family

If your income is low enough and you meet all other requirements, you should sign up for Health First Colorado (Medicaid) or Child Health Plan Plus (CHP+).

More Ways to Qualify for Health First Colorado (Medicaid) if You Have a Disability

There are other ways to qualify for Health First Colorado (Medicaid) if you have a disability. You might qualify for disability-based Health First Colorado (Medicaid) if:

• You get Supplemental Security Income (SSI) benefits.
• You make more money at work than income-based Health First Colorado (Medicaid) allows. In that case, you could apply for Health First Colorado Buy-In Program For Working Adults With Disabilities (Medicaid Adult Buy-In).
• You also get Medicare. Usually, Health First Colorado (Medicaid) doesn’t cover people getting Medicare, but disability-based Health First Colorado (Medicaid) does. It may even help pay your monthly Medicare premiums.
• You are 65 years old or older.

You might qualify for income-based Health First Colorado (Medicaid), even though you have a disability, if:

• Your disability does not meet Social Security’s definition of disability. Disability-based Health First Colorado (Medicaid) is only for people who have disabilities meeting this standard.
• You have more resources than are allowed by disability-based Health First Colorado (Medicaid) and do not work.
• You make enough money that you would have to pay a monthly premium for the Medicaid Adult Buy-In.

Learn more about disability-based Health First Colorado (Medicaid) and the Medicaid Adult Buy-In.

How to Sign Up

You can apply for Health First Colorado (Medicaid), Child Health Plan Plus (CHP+), and other Colorado programs:

• Online on the Colorado PEAK website
• With a paper application (available in English, Spanish, or large print). Fill it out and return it by mail, fax, or in person at your county human services department, or
• By phone at 1-800-221-3943.

Colorado PEAK lists the details you may need to fill out an application.

Note: Due to COVID-19, there may be limits on in-person services. Contact your agency by phone to ask about this.

Staying on Health First Colorado (Medicaid)

Usually, once approved for Health First Colorado (Medicaid), you continue to qualify as long as your situation doesn’t change. If your income, immigration status, residency, or household size changes, let your county human services department know within 10 days of the change. You can do this in person, by phone, or by email. When you report your changes, the county tells you whether you continue to get Health First Colorado (Medicaid) or if you have new health coverage options, like individual coverage with subsidies or the Medicaid Adult Buy-In.

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