Colorado Community Spouse Resource Allowance (CSRA) 2026

When one spouse enters a nursing home or long-term care facility and applies for Health First Colorado (Medicaid), the at-home spouse doesn't have to drain every account to qualify. Federal spousal impoverishment protections — applied through Colorado's CSRA rules — let the community spouse keep a meaningful share of the couple's joint assets.

Here's exactly how it works for 2026.

2026 CSRA Limits

The Community Spouse Resource Allowance for Colorado in 2026:

• Minimum CSRA: $32,532
• Maximum CSRA: $162,660

The at-home spouse can keep half of the couple's total countable assets, subject to these floor and ceiling amounts. If half the assets fall below $32,532, the community spouse keeps the minimum. If half exceeds $162,660, they keep the maximum.

Example: A couple has $200,000 in countable assets. Half is $100,000. Since that falls between the floor and ceiling, the community spouse keeps $100,000. The institutionalized spouse must spend down their remaining $100,000 to the $2,000 individual asset limit before Medicaid coverage begins.

Example: A couple has $50,000 in countable assets. Half is $25,000, which falls below the floor. The community spouse keeps the guaranteed minimum of $32,532. The institutionalized spouse must spend down the remaining $17,468 to $2,000.

When the Snapshot Happens

Colorado calculates the CSRA based on the couple's combined assets on the first day of continuous institutionalization — the day the applicant spouse enters a hospital, nursing facility, or other institution and stays for at least 30 consecutive days.

This snapshot date is critical. If you're anticipating a nursing home admission, the timing of asset transfers, account consolidations, and spend-down activities should be planned around this date.

What Counts as an Asset

Countable assets (subject to the CSRA calculation):

• Checking and savings accounts
• Certificates of deposit
• Stocks, bonds, and mutual funds
• IRAs and 401(k) accounts
• Cash value of life insurance policies over $1,500 face value

Exempt assets (not counted):

• Primary home (equity up to $1,130,000 in 2026, if the community spouse resides there)
• One vehicle
• Household furnishings and personal effects
• Prepaid irrevocable burial trusts and plots
• Term life insurance

The MMMNA: Income Protection for the Spouse

Beyond asset protection, Colorado also ensures the community spouse has adequate monthly income through the Minimum Monthly Maintenance Needs Allowance (MMMNA):

• 2026 MMMNA floor: $2,705.00/month
• 2026 MMMNA ceiling: $4,066.50/month

If the community spouse's own income falls below the MMMNA floor, a portion of the institutionalized spouse's income can be legally transferred to make up the difference — before the remainder goes toward care costs.

Common Mistakes That Cost Families

Gifting assets before the snapshot. Colorado enforces a 60-month look-back period. Transferring assets to family members or into trusts to reduce the countable pool triggers penalty periods. The 2026 penalty divisor is $10,475 per month — every dollar transferred below fair market value creates ineligibility.

Recording a beneficiary deed on the home. Under C.R.S. § 15-15-403, recording a beneficiary deed on a primary residence in Colorado instantly converts it from exempt to countable. This state-specific rule has caught many families off guard during Medicaid applications.

Not establishing a Miller Trust when needed. Colorado is a strict income-cap state. If the institutionalized spouse's gross monthly income exceeds $2,982 (2026 limit), they're automatically ineligible unless a Qualified Income Trust (Miller Trust) is established to route the excess income.

Planning the Spend-Down

The gap between the institutionalized spouse's share and the $2,000 limit must be closed through compliant spending — not gifting. Legitimate spend-down options include:

• Home accessibility modifications (ramps, grab bars, bathroom renovations)
• Vehicle purchase or upgrades
• Paying off mortgage or credit card debt
• Prepaid irrevocable funeral arrangements
• Medical equipment and home care costs

Each expenditure must be documented and defensible under the 60-month look-back review.

The Colorado Power of Attorney & Guardianship Kit includes a Medicaid financial planning chapter with the exact asset limits, spend-down strategies, and Miller Trust setup process for Colorado families.

See more Colorado guides →