What Counts as a Resource for Colorado Medicare Savings Programs (and What Doesn't)

The Resource Limits in 2026

Colorado's 2026 resource limits for QMB, SLMB, and QI-1 are $11,160 for an individual and $17,470 for a couple. When the mandatory $1,500-per-person burial expense disregard is included, the effective ceilings rise to $11,450 individual and $17,910 couple.

QDWI has lower limits: $4,000 individual, $6,000 couple.

These limits are higher than the federal baseline numbers you'll see on national websites ($9,950 individual, $14,910 couple). Colorado applies annual CPI adjustments through HCPF Operational Memos — don't let out-of-state figures convince your parent they're over the limit when Colorado's numbers say otherwise.

What Counts

County eligibility workers look at liquid assets the applicant owns and can access:

• Bank accounts — checking, savings, money market. County workers evaluate the applicant's legal ownership and direct access, including for joint accounts; document both when submitting account statements.
• Certificates of deposit — counted at face value, regardless of early withdrawal penalties.
• Stocks, bonds, and mutual funds — current market value.
• IRA and retirement account balances — countable if the applicant can access the funds (this is where it gets complicated — see below).
• Secondary real estate — investment property, vacant land, or a second home. Counted at equity value.
• Cash on hand — including cash equivalents like cashier's checks or money orders.

What Doesn't Count

These are the statutory exclusions under Colorado's SSI-related rules, and they're absolute — county workers cannot count these regardless of their value:

Primary home. The home your parent lives in is fully exempt, no matter what it's worth. A $500,000 house in Denver and a $100,000 house in Pueblo are both completely excluded. The home must be the applicant's primary residence — they need to live there or intend to return if temporarily away (such as during a hospital stay).

One vehicle. One car used for transportation by the applicant or household member is exempt regardless of make, model, or value. A second vehicle would be counted at equity value.

Burial spaces. Burial plots, crypts, vaults, mausoleums, or urns intended for the applicant or immediate family members. No dollar limit.

Burial funds. Up to $1,500 set aside specifically for burial expenses in a designated account, prepaid burial contract, or life insurance policy with cash surrender value earmarked for burial. This is the disregard that raises the effective resource ceiling from $11,160 to $11,450 for individuals.

Household goods and personal effects. Furniture, appliances, clothing, jewelry worn regularly — all excluded regardless of value.

Life insurance with face value under $1,500. If the total face value of all life insurance policies is $1,500 or less, the cash surrender value is not counted. If over $1,500 in face value, only the cash surrender value of the policies counts as a resource (not the face value).

The IRA Question

Retirement account treatment depends on legal ownership and direct withdrawal access. Colorado's MSP rules identify liquid balances in IRAs and annuities as countable resources. The treatment of an employer plan, a restricted account, or an account in distribution depends on its specific terms; ask the county to evaluate the account before assuming its balance is excluded or fully countable.

If your parent's IRA balance pushes them slightly over the resource limit, talk to a financial advisor or SHIP counselor about whether spending down on exempt items (prepaying burial expenses up to $1,500, paying off the primary home mortgage) could bring them under the threshold. The guide product does not provide financial planning advice, but it's important to know the option exists.

Common Mistakes

Counting the home. The most common error families make is assuming their parent's home equity disqualifies them. It doesn't. MSP resource tests don't include the primary residence.

Using federal limits instead of Colorado limits. National websites list $9,950/$14,910. Colorado's limits are $11,160/$17,470 (or $11,450/$17,910 with burial disregards). A family looking at the federal numbers might give up when their parent would actually qualify under Colorado's higher thresholds.

Forgetting the burial disregard. If your parent has $1,500 set aside for burial expenses in any form — a designated savings account, a prepaid funeral plan, or life insurance cash value — that amount is excluded from countable resources. Some families don't realize they need to designate these funds; the money has to be specifically set aside for burial, not just sitting in a general savings account.

Including an adult child's assets. If your parent lives with you, your income and assets are not counted. Income deeming applies only between spouses or from parent to minor child. Your savings account, your home equity, your investments — none of it affects your parent's MSP eligibility.

Our Colorado Medicare Savings Programs & Extra Help Guide includes an eligibility worksheet that walks through both the income and resource calculations using Colorado's specific limits and exclusions, so you can verify eligibility before applying — and catch county errors if the determination comes back wrong.

See more Colorado guides →