Colorado Medicaid Policy Update: The 56-Hour Cap Pause and What it means for IHSS Families

Feb 17, 2026 | Medicaid Policy Updates

Written by: Jason Schlosky

Inspired by his own journey as a family member and father, Jason has spent his career humanizing Colorado’s care systems.

In the rapidly changing landscape of Colorado’s In-Home Support Services (IHSS), families often face uncertainty regarding policy changes. At Caregivers First Choice, our mission is to provide clarity and stability through wage leadership and expert advocacy.

The Urgent News - Updated Feb 2026

Recent guidance from the Department of Health Care Policy & Financing (HCPF) has issued an immediate pause on the implementation of the 56-hour caregiving cap. This means Case Management Agencies (CMAs) have been instructed to hold all outreach and planning discussions regarding this specific cap while policy directions and timelines are further revised.

What Families Need to Know

If you are a family currently directing care through IHSS or other waiver services, your authorized hours are not subject to a 56-hour individual caregiver cap at this time. This delay allows for further discussion with stakeholders and the Joint Budget Committee (JBC) regarding the long-term sustainability of the Long-Term Services and Supports (LTSS) system.

Why Hourly Rates Matter Even More Now

While the state reviews sustainability measures, one fact remains: Your hourly rate is your best defense against future policy shifts. CFC enters the market specifically to reward family caregiver expertise with some of the state's highest wages via our experience-based tier system:

  • Tier 1 (0-2 years): $19-$22/hour
  • Tier 2 (2-5 years): $19.95-$23.10/hour
  • Tier 3 (5+ years): $20.90-$24.20/hour

The Community First Choice (CFC) Advantage

As Community First Choice continues its transition through 2026, more families can access essential care without traditional waiver limitations. Notably, a December 2025 IRS ruling confirmed that Difficulty of Care (DOC) payments under the CFC program are excludable from federal income tax for live-in caregivers, providing significant financial relief to Colorado families.

Next Steps

Don't wait for policy shifts to affect your home. Partner with an agency that prioritizes transparency and family expertise.
Contact Caregivers First Choice today to learn how our wage-leadership model protects your family’s future.

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