Colorado Medicaid Estate Recovery
After someone who received Medicaid long-term care dies, Colorado can file a claim against their estate. This guide explains what is recovered, who is protected, and how to ask for relief.
Based on C.R.S. 25.5-4-302 (Recovery of assets); HCPF rules at 10 CCR 2505-10, Section 8.063
What Colorado recovers
For recipients who were age 55 or older when they received medical assistance, recovery is limited to the cost of nursing facility services, home and community-based services, and related hospital and prescription drug services. For recipients who were institutionalized (e.g., in a nursing facility) when they received assistance, all Medicaid payments made on their behalf may be recovered, including payments to providers and capitation fees. The Department files a claim against the deceased recipient's estate (personal and real property left at death), and proceeds from the sale of estate property reimburse the Department.
Colorado recovers only from the probate estate. Assets that pass outside probate, such as joint property with survivorship, life estates, living trusts, and transfer-on-death or pay-on-death accounts, are generally beyond recovery.
55 (federal minimum). For recipients age 55 or older, recovery is limited to long-term-care related services (nursing facility, home and community-based services, and related hospital and prescription drug services). For recipients who were institutionalized when they received assistance, recovery applies regardless of age and covers all Medicaid payments made on their behalf.
Who is protected from recovery
No recovery while the deceased recipient is survived by a spouse.
No recovery while the deceased recipient is survived by a child under age 21.
No recovery while the deceased recipient is survived by a blind or disabled dependent residing in the home.
Sibling caregiver: no recovery against the home if a brother or sister lived in the home for at least one year before the recipient went into a nursing facility and has lived in the home continuously since the date of entry into the facility.
Caregiver child: no recovery against the home if a son or daughter lived in the home for at least two years before the recipient entered a nursing facility, whose care allowed the recipient to delay nursing facility placement, and who has lived in the home continuously since the date of entry into the facility.
The state may compromise, settle, or waive recovery for good cause shown (C.R.S. 25.5-4-302), and may not pursue recovery when the amount is economically inappropriate relative to the cost of recovery.
Heirs may keep property in the estate by agreeing to pay the Department the amount it would otherwise have recovered.
Property that may be exempt
- Assets that pass outside probate are generally not part of the probate estate Colorado recovers from, because Colorado uses probate-only recovery. This includes real property held in joint tenancy with right of survivorship, bank and other accounts with pay-on-death or transfer-on-death beneficiary designations, and real property conveyed by a beneficiary (transfer-on-death) deed.
- Only property that is left in the estate and passes through Colorado probate is reachable (for example, a home titled solely in the decedent's name, bank accounts with no named beneficiary, and solely owned vehicles).
Undue-hardship waiver
Colorado can waive recovery when it would cause an undue hardship for the heirs. Contact Colorado Department of Health Care Policy & Financing (HCPF), Health First Colorado at Estate recovery vendor (Health Management Systems): (303) 837-8293; HCPF Member Contact Center: 1-800-221-3943 (State Relay 711) to request the waiver and confirm deadlines.
Hardship waiver informationFrequently asked questions
Does Colorado recover Medicaid costs from non-probate assets?
Who is protected from Medicaid estate recovery in Colorado?
What does Colorado Medicaid recover after death?
Can I apply for an undue-hardship waiver in Colorado?
Who handles Medicaid estate recovery in Colorado?
Agency and statute sources
Settling an estate with a Medicaid claim?
Use the Colorado probate assessment to organize the estate and see how the claim fits the process.
Information current as of June 28, 2026
This content is for informational purposes only and does not constitute legal advice. Probate laws and procedures in Colorado can change. Consult with a qualified attorney for advice specific to your situation. Full disclaimer.