Most families assume they have only one option: private pay until the money runs out. In reality, Colorado families have up to six distinct funding sources, and a smart combination can extend resources significantly:
Each option has different eligibility rules, lead times, and trade-offs. We cover all six.
Most ALR residents enter as private-pay residents — paying out of pocket from savings, Social Security, pension income, retirement distributions, or proceeds from a home sale. Denver metro ALR costs run $3,200–$7,800+/month depending on location and care level.
Key questions for private-pay planning:
Colorado's HCBS-EBD (Home & Community-Based Services for the Elderly, Blind, and Disabled) waiver covers personal care and services in ALR settings for eligible residents.
Eligibility: Single applicants generally need countable assets below $2,000. Income above the Medicaid income cap is applied toward the cost of care.
Functional test: Applicants must need a nursing-facility level of care. CDPHE conducts an in-home assessment.
Lead time: Applications take 45–90 days. Many families apply proactively while still private-paying.
Spend-down: Colorado allows the community spouse to retain a Community Spouse Resource Allowance (CSRA); consult an elder law attorney to protect assets within legal limits.
Not all ALRs accept Medicaid — fewer than 40% of Denver-metro communities do. Confirm acceptance in writing before move-in.
The VA Aid & Attendance benefit is one of the most underutilized senior care funding sources for Colorado veterans. It is not means-tested the same way Medicaid is, and assets well above Medicaid limits may still qualify.
2026 Aid & Attendance monthly maximums:
Application timeline: 6–12 months average. A VA-accredited claims agent or elder law attorney can help structure the application and avoid common delays. Retroactive payments are made to the date of application once approved.
Long-term care (LTC) insurance, if your loved one purchased it years ago, can significantly reduce out-of-pocket costs. Policy benefits typically cover $100–$250/day with an elimination period (typically 90 days) before benefits begin.
Key steps to activate LTC insurance:
Many Colorado families don't realize a loved one has a policy — check with former employers, AARP, and any insurance file storage.
If your loved one owns a home, a reverse mortgage (Home Equity Conversion Mortgage, HECM) can convert home equity into tax-free monthly income or a line of credit. The homeowner must be 62+.
Alternatively, selling the home outright generates the most liquidity. For Denver-area families, the sale of a home — where median prices remain above $500,000 in most suburbs — often provides 3–5+ years of fully-funded ALR care.
Note: If you plan to apply for Medicaid eventually, discuss home sale timing with an elder law attorney. Colorado has Medicaid look-back rules for asset transfers.
If a resident needs to move into an ALR immediately but funds are tied up in a home pending sale, senior living bridge loans (offered by specialty lenders such as Elderlife Financial and others) can cover monthly costs for 6–18 months while the home sells. Interest rates are typically 8–12% annualized.
Bridge loans are not a long-term solution, but they solve the critical timing gap between 'needs care now' and 'home closes in three months.'
Most Colorado families use a combination of private pay, Medicaid planning, and veterans benefits — not just one source. Working with an elder law attorney and a placement advisor can help you sequence the options most beneficially.
Our advisors can identify which Denver and Denver-metro communities accept HCBS-EBD Medicaid, which have VA-friendly billing, and what the realistic all-in monthly cost will be. Our service is free for families.
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