Top 5 Mistakes Families Make When Applying for Long-Term Care Medicaid in Colorado
Top 5 Mistakes Families Make When Applying for Long-Term Care Medicaid in Colorado
When a loved one needs long-term care, emotions run high—and so can the costs. Long-Term Care (LTC) Medicaid can be a critical lifeline, helping cover nursing home or in-home care expenses. But navigating the Medicaid application process in Colorado is far from simple, and mistakes can delay approval, trigger penalties, or cost families thousands.
Here are the top five mistakes families make when applying for LTC Medicaid—and how to avoid them.
Mistake #1: Waiting Too Long to Start Planning
Many families only begin the Medicaid planning process once a health crisis hits. At that point, decisions are rushed, and options are limited. The truth is: Medicaid planning should start early, even years before care is needed.
Planning ahead allows families to protect assets, avoid penalties, and qualify faster when the time comes. Even if your loved one is already in a facility or needs care now, there are often still legal and financial strategies available—but the sooner you act, the better.
Mistake #2: Gifting Assets Without Understanding the Look-Back Period
It’s common for people to think they can give money or property to family members to “spend down” assets and qualify for Medicaid. However, Medicaid has a 5-year look-back period in Colorado. This means that any gifts or asset transfers made within the past five years can lead to a penalty period during which Medicaid won’t pay for care.
Gifting without understanding this rule can unintentionally disqualify a loved one from coverage when they need it most. Always consult a Medicaid Certified Planner before transferring any assets.
Mistake #3: Assuming All Assets Must Be Spent Down
Contrary to popular belief, not all assets need to be spent down to qualify for LTC Medicaid. Some assets are exempt, including:
The primary residence (under certain conditions)
One vehicle
Personal belongings
Certain types of burial arrangements
Community Spouse Income
Strategic planning can help preserve these assets while still achieving Medicaid eligibility.
Mistake #4: Not Using a Qualified Medicaid Planner
The Medicaid application process is technical and unforgiving. Submitting incorrect paperwork, missing documentation, or misunderstanding eligibility rules can result in a denial or delay.
A qualified Medicaid planner understands Colorado’s specific rules and can guide you through:
Proper spend-down strategies
Asset protection techniques
Gathering required documentation
Communicating with Medicaid caseworkers
Trying to go it alone can cost you far more in the long run.
Mistake #5: Confusing Medicaid with Medicare
Many families assume Medicare will cover long-term care. In reality, Medicare only pays for short-term rehabilitation (up to 100 days) after a hospital stay—it does not cover custodial care in a nursing home or long-term in-home care.
LTC Medicaid is the primary government program that helps cover these costs, but eligibility and benefits are very different from Medicare.
Final Thoughts
Applying for Long-Term Care Medicaid in Colorado doesn’t have to be overwhelming—but it does require the right guidance. Avoiding these five common mistakes can save you time, money, and unnecessary stress.
If you’re unsure about your loved one’s eligibility, or if you're ready to get started, I’m here to help. Contact us for a free consultation or visit our resource center for more information.
Let’s take the next step together—because doing good for others starts with peace of mind for your family.