If you served your country and now call Colorado home, you have earned access to support that can make a real difference in your life. But navigating Veterans Affairs (VA) benefits and Medicaid at the same time may become a challenge. This guide covers how you can protect your assets while securing the benefits you deserve.
Where VA benefits and Medicaid intersect
VA pension programs such as Aid and Attendance give monthly payments to eligible wartime veterans who need help with daily activities and meet certain financial requirements. In contrast, Medicaid (also called Health First Colorado) mainly covers long-term care costs for people with limited income and assets.
Beyond their different purposes, the financial thresholds between these programs also differ significantly. The VA pension program sets a net worth limit of $163,699 as of December 2025.
This limit includes your assets plus your annual income after you subtract unreimbursed medical expenses. Colorado Medicaid, on the other hand, requires single long-term care applicants to have $2,000 or less in countable assets.
The programs also treat asset transfers differently. The VA reviews transfers of “covered assets” within a three-year window, while Colorado Medicaid extends this period to five years. If you transfer holdings for less than fair market value during either timeframe, you can face delays in your eligibility.
How asset protection strategies may help preserve both
Protecting your assets while staying eligible for benefits often requires a layered approach. Here are some strategies worth exploring:
- Setting up an irrevocable funeral trust or prepaid burial plan, as these are generally considered exempt assets under both programs
- Exploring a Qualified Income Trust (Miller Trust) if your income exceeds Colorado Medicaid’s monthly limit of $2,982
- Looking into the state’s long-term care partnership program, which might allow you to protect assets equal to what your partnership insurance policy pays out
Each of these approaches carries its own rules and risks. Consulting with an attorney can help you determine which options fit your broader estate plan.
What you should know about maximizing coverage
For veterans, the key to maximizing coverage often lies in coordinating VA benefits with these state programs. VA Aid and Attendance payments, for example, may not always count as income for Medicaid purposes, which could allow you to receive both forms of assistance.
Starting the planning process early tends to offer the most flexibility. Because both the VA and Medicaid impose lookback periods, giving yourself enough lead time before you need care can open up strategies that would otherwise be unavailable.