When it comes to determining the value of your assets, it is your net equity that you must be attentive to. This means that the “value” of an asset can be determined by the price it could reasonably expected to sell for in your area minus any encumbrances (such as debt) against it.
So, this means that if you have $5,000 in a checking account at the bank and $5,000 worth of debt on a credit card, the cash cannot be netted against the debt. However, you would still have to pay off the debt or else Medicaid will count your cash towards your asset limit and ignore the debt all together.
To learn more about Colorado Medicaid, Medicaid qualification, and income and asset restrictions click here to visit our Medicaid website. You can also call (303) 945-3242 to get in touch with a Colorado Medicaid attorney who specializes in asset protection and crisis planning.