Colorado participates in the federal/state long-term care partnership program. The Colorado Long-Term Care Partnership Program is a public/private arrangement between long-term care insurers, Colorado's Medicaid program, the Division of Insurance, the Department of Human Services and the citizens of Colorado. It enables Colorado residents who purchase qualifying Long-Term Care Insurance to have more of their assets protected if they later need the state Medicaid program to help pay for their long-term care.
This additional asset safeguard is called dollar-for-dollar asset protection. If your Colorado Partnership Long-Term Care policy pays $450,000, for example, that same amount will be disregarded when calculating the spend-down requirements for Medicaid. Colorado is using this approach to give its citizens greater control over how they finance their long-term care and to help shore up the public safety net against upcoming demographic pressures.
Long-Term Care Medicaid spend down is $2000. A spouse’s minimum asset allowance is $123,600.
Most states have reciprocity with other states' long-term-care partnership programs including Colorado. This means if you move from or to Colorado your additional partnership asset protection will be honored.
Colorado has a state income tax credit equal to the lesser of 25% of premiums paid for an LTC insurance policy, or $150 per policy. Individuals who qualify for the credit are those with federal taxable income
less than $50,000 ($100,000 for joint filers claiming a credit for 2 policies). The federal tax incentives also apply.
A variety of products are approved in Colorado for Long-Term Care planning.
Colorado Long-Term Care Costs
|Home Health Aide||Average Monthly Rate||$4,910|
|Homemaker Services||Average Monthly Rate||$4,767|
|Adult Day Care||Average Monthly Rate||$1,625|
|Assisted Living||Average Monthly Cost||$4,000|
|Skilled Nursing Home||Semi-Private Monthly||$7,892|
|Skilled Nursing Home||Private Average Monthly||$9,000|