By Duncan Legal, PC | Centennial, CO
Helping People Solve Life’s Puzzles.
A new federal law—informally known as the Big Beautiful Bill—has passed, and it carries big implications for anyone who may need Medicaid to cover long-term care costs in the future.
While it may not be widely known outside legal and healthcare circles yet, this bill introduces substantial changes to Medicaid eligibility, funding, and the care landscape across the country. Whether you’re planning for yourself or a loved one, now is the time to understand what’s changing—and what you can do to prepare.
Home Equity Cap Frozen at $1 Million
Currently, when applying for Medicaid, a portion of your home’s value is exempt—meaning it isn’t counted when determining your eligibility. Each state has some discretion in setting this exemption limit, which typically ranges between $730,000 and $1,097,000, and increases annually with inflation.
However, under the new law, a nationwide cap of $1,000,000 will take effect on January 1, 2028—and will no longer adjust for inflation.
While a $1 million exemption may seem generous now, real estate values are steadily rising. Without future inflation adjustments, more homeowners—especially those in metro areas like Denver and Centennial—may find their homes pushing them above the eligibility threshold.
If your home is a significant part of your wealth, now is the time to explore planning options that can shield that equity and maintain access to benefits later in life.
Retroactive Coverage Reduced from 90 Days to 30
One of Medicaid’s safety nets has been its ability to retroactively cover up to 90 days of qualifying care expenses prior to the date of application. This provision has helped families cover costs in situations where a nursing home stay came on suddenly and without warning.
Starting soon, that coverage window will be reduced to just 30 days.
This change raises the stakes for timing. Filing late—even by a few weeks—could leave your family responsible for thousands of dollars in uncovered care costs. Ensuring that you have a plan in place ahead of time will help avoid missed deadlines and financial surprises.
Funding Cuts May Strain Nursing Homes
The Big Beautiful Bill also includes significant cuts to federal Medicaid funding. Providers and care advocates warn that these cuts could place major stress on nursing homes—particularly those in rural or lower-income areas.
- Some facilities may reduce services or delay maintenance
- Others may struggle to retain qualified staff or even face closure
- A now-overturned staffing regulation had aimed to require 24/7 RN coverage, but funding pressures remain
- A new moratorium on provider taxes limits how states can offset funding losses
These behind-the-scenes changes may not be immediately visible—but over time, they could impact care quality, bed availability, and waitlists, making it even more important to plan early and carefully choose your long-term care providers.
What This Means for You
With the passage of the Big Beautiful Bill, the message is clear: Medicaid eligibility will become harder to achieve, and the quality of care may become less consistent.
If you’re counting on Medicaid—or simply want to protect your options—it’s time to take proactive steps, including:
- Reviewing your home equity and considering strategies to protect it
- Ensuring your legal documents (wills, powers of attorney, and trusts) are up to date and compliant with changing rules
- Talking to an experienced attorney about your long-term care plan, whether for yourself, a spouse, or a parent
At Duncan Legal, PC, we help families throughout Colorado navigate these evolving rules with clarity and confidence—so you’re prepared before a crisis hits.
Let’s Build a Plan That Protects Your Legacy
Visit Us: 6436 S Racine Cir, Ste 227, Centennial, CO 80111
Call Us: (303) 394-2358
Learn More: www.duncanlegal.com
