Medicare does not pay for assisted living or memory care in Denver. Health First Colorado can pay for the care part at a certified community, but not rent. Here is how each one works in 2026.
By the Denver Senior Advisor Care Team · October 24, 2026
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Marcus: Welcome to the Denver Senior Advisor podcast. I'm Marcus.
Dana: And I'm Dana. Today we're answering the question families ask us most when a parent needs more help: who actually pays?
Marcus: Because everybody assumes Medicare will pick up the bill for assisted living.
Dana: And it's the most expensive misunderstanding in senior care. So let's take it apart.
Marcus: Start with the big one. Does Medicare pay for assisted living or memory care in Denver?
Dana: No. Medicare says it does not provide long-term or custodial care unless medical care is needed. Help with bathing, dressing, meals and supervision is custodial care. So the rent and the daily care at an assisted living or memory care community come from somewhere else.
Marcus: But I see places advertising that they accept Medicare.
Dana: They may welcome residents who have Medicare. That's different from Medicare paying the monthly bill. Medicare keeps covering doctor visits and hospital care while your parent lives there.
Marcus: What about hospice?
Dana: Medicare covers hospice in the place where your parent lives, including assisted living. But Medicare says you may still have to pay room and board in a facility.
Marcus: So what does Medicare cover after a hospital stay in a Denver skilled nursing facility?
Dana: Short-term care, not long-term living. Your parent needs an inpatient hospital stay of at least three days in a row, and a doctor has to decide they need daily skilled nursing or therapy.
Marcus: And observation days?
Dana: They don't count. Time in observation or the emergency room isn't part of the three days. That catches a lot of families.
Marcus: How long does the coverage last?
Dana: Up to 100 days in a benefit period. In 2026, days 1 through 20 cost nothing after the $1,736 Part A deductible. Days 21 through 100 cost $217 a day.
Marcus: And once the therapy stops helping?
Dana: Coverage ends, even if the 100 days aren't used up. So plan the next step early, whether that's home, assisted living or memory care.
Marcus: Okay. What's the real difference between Medicare and Health First Colorado for a Denver family?
Dana: Medicare is federal health insurance. Health First Colorado is Colorado's Medicaid program, and it's based on income, assets and care needs. Only Health First Colorado can pay for ongoing care in assisted living or memory care.
Marcus: Does it pay the rent?
Dana: No. It pays for the care part. The resident still pays room and board.
Marcus: How does Health First Colorado pay for memory care in Denver?
Dana: Through the Elderly, Blind and Disabled waiver, at communities certified as Alternative Care Facilities. The state describes them as certified assisted living residences with 24-hour protective oversight and personal care.
Marcus: What does the family pay?
Dana: For 2026, the state set room and board at $810 a month at those communities. And your parent keeps a personal needs allowance of $184 to $435.46 a month.
Marcus: Does every community take the waiver?
Dana: No. In the state health department's active facility data for the seven-county metro, 148 of 421 active assisted living residences hold the Alternative Care Facility certification.
Marcus: And for memory care specifically?
Dana: The state's public data doesn't show which ones run a secured memory care unit. So ask each community directly whether it accepts the waiver for its memory care beds.
Marcus: Who qualifies for Health First Colorado long-term care in 2026?
Dana: There are three tests: income, assets and level of care. The income limit is $2,982 a month for an individual. The asset limit is $2,000 for an individual and $3,000 for a couple.
Marcus: What if only one spouse needs care?
Dana: The spouse at home can keep up to $162,660, plus $2,000.
Marcus: And the care test?
Dana: Your parent needs significant help with daily activities like bathing, dressing or mobility. A Case Management Agency does that assessment. You can apply through Colorado PEAK, your county human services office, or the Member Contact Center at 1-800-221-3943.
Marcus: Where can a family get free local help?
Dana: The Denver Regional Council of Governments Area Agency on Aging, at 303-480-6700. Their long-term care ombudsman line is 303-480-6734.
Marcus: The full guide, with the comparison table and links to our memory care and Medicaid pages, is in the description.
Dana: And if you'd like to talk it through, a Denver Senior Advisor is free. See you next time.
No. Medicare does not pay for the monthly cost of assisted living or memory care in Denver or anywhere else. Medicare says it does not provide long-term or custodial care unless medical care is needed, and that you pay all costs for non-covered services, including most long-term care. Help with bathing, dressing, meals and supervision is custodial care, so the rent and care fees at an assisted living residence come from somewhere else.
Medicare still matters after a move. It keeps paying for doctor visits, hospital stays and other covered medical care while your parent lives in a community. It also pays for hospice care in the place where your parent lives, including an assisted living residence, but Medicare says you may have to pay room and board in a facility during hospice.
This is why searches like "assisted living that accepts Medicare" can mislead families. A community may welcome residents who have Medicare, but Medicare is not the payer for the apartment or the daily care. The payer for the monthly bill is usually private funds, long-term care insurance, veterans benefits, or Health First Colorado for people who qualify.
Medicare covers short-term care in a skilled nursing facility, not long-term living. To qualify, your parent needs a medically necessary inpatient hospital stay of at least three days in a row, and a doctor must decide they need daily skilled nursing or therapy. Time spent in observation or the emergency room does not count toward the three days.
Part A limits skilled nursing coverage to 100 days in each benefit period. In 2026, days 1 through 20 cost $0 per day after the $1,736 Part A deductible, and days 21 through 100 cost $217 per day. Medicare Advantage plans may charge different copays. Once your parent no longer needs daily skilled care, Medicare coverage ends even if the 100 days are not used up.
Many Denver families meet this rule after a fall or a stroke. The rehab stay is covered, but the next step, whether that is home, assisted living or memory care, is not. Plan that next step early. See our page on Medicare and nursing homes in Denver for local options.
Medicare is federal health insurance. Health First Colorado is Colorado's Medicaid program, run by the Department of Health Care Policy and Financing, and it is based on income, assets and care needs. Only Health First Colorado can pay for ongoing care in an assisted living or memory care setting.
| Question | Medicare | Health First Colorado (Medicaid) |
|---|---|---|
| Long-term custodial care | Not covered | Covered through waiver services for people who qualify |
| Assisted living or memory care rent | Not covered | Not covered; the resident pays room and board ($810 a month in 2026 at a certified community) |
| Personal care in assisted living | Not covered | Covered through the Elderly, Blind and Disabled waiver at an Alternative Care Facility |
| Skilled nursing facility | Up to 100 days per benefit period after a qualifying 3-day hospital stay | Not part of this waiver; ask your Case Management Agency about nursing facility coverage |
The practical upshot: Medicare can carry your parent through a hospital stay and a short rehab, but the long-term plan for assisted living or memory care has to be built on private funds, insurance, veterans benefits or Health First Colorado.
Health First Colorado pays for the care part of assisted living through the Elderly, Blind and Disabled (EBD) waiver, at communities certified as Alternative Care Facilities. The state describes these as certified assisted living residences that offer health services in a community setting, including 24-hour protective oversight and personal care. The resident still pays room and board.
For 2026, the state set the room and board amount at $810 a month for Alternative Care Facilities. The personal needs allowance, the money a resident keeps each month, ranges from $184 to $435.46. Both figures took effect January 1, 2026.
Not every community takes the waiver. In CDPHE's active facility data for the seven-county Denver metro (updated September 29, 2026), 148 of 421 active assisted living residences hold the Alternative Care Facility certification. CDPHE's public data does not show which ones run a secured memory care unit, so ask each community directly whether it accepts the waiver for its memory care beds. Our Denver memory care accepting Medicaid page is a place to start, and the assisted living directory lists licensed residences.
Your parent must meet three tests: income, assets and level of care. For 2026, Colorado lists a long-term care income limit of $2,982 a month for an individual, which is 300% of the $994 federal SSI amount. The resource limit is $2,000 for an individual and $3,000 for a couple. When only one spouse needs care, the other spouse can keep a community spouse resource allowance of up to $162,660 plus $2,000.
The level-of-care test asks whether your parent needs significant help with daily activities such as bathing, dressing or mobility. A Case Management Agency does that assessment and handles waiver enrollment. You can apply online through Colorado PEAK, contact your county human services office, or call the Health First Colorado Member Contact Center at 1-800-221-3943.
For free local help, the Denver Regional Council of Governments (DRCOG) Area Agency on Aging runs information and assistance at 303-480-6700, serving Adams, Arapahoe, Clear Creek, Douglas, Gilpin and Jefferson counties plus Broomfield and Denver. Its long-term care ombudsman line is 303-480-6734. Read more on our EBD waiver guide and Colorado Medicaid eligibility pages.
Last verified: October 2026.
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