The “I Make Too Much” Myth: Does Your Income Actually Disqualify Your Child from Medicaid?

If you are raising a child with significant medical or behavioral needs, you have likely heard about In-Home Support Services (IHSS)—the program that allows you to be paid for the specialized care you provide at home.

But for many Colorado families, the conversation stops before it even starts due to this common misconception:

"My spouse and I have good jobs. We definitely earn too much to qualify for Medicaid, so we can't get IHSS."

At Caregivers First Choice (CFC), we want to stop your dismissive thinking right there. While this is true for standard health insurance, it is often FALSE for children with disabilities.

The truth is, Medicaid eligibility isn't a single door; it’s more like a hallway with four different entrances. Depending on which door you walk through, your income might not matter at all.

Here is the breakdown of how income actually impacts your child’s coverage.

Pathway 1: Standard Health First Colorado (Medicaid) & CHP+

This is the traditional route, and it is where most families get discouraged. Under this pathway, the state looks at your total household income.

• The Rule: Generally, children (ages 0–18) qualify if the household earns up to approximately 142% of the Federal Poverty Level (FPL).
• The Buffer: If you earn slightly more, Child Health Plan Plus (CHP+) covers children in households earning up to roughly 260% FPL.
• The Verdict: If you are a single-income household or working part-time, you might qualify here. But for many dual-income families, this door is locked.

Source: Health First Colorado Income Guidelines (Official State Site)

Pathway 2: The Medicaid Buy-In for Children with Disabilities (CBwD)

This is a big deal for middle-income families. Colorado offers a program specifically for families who earn "too much" for standard Medicaid but have a child with a qualifying disability.

• The Rule: You can "buy into" Medicaid coverage by paying a monthly premium (based on a sliding scale).
• The Income Limit: The limit is much higher here—up to 300% of the Federal Poverty Level.
• The Secret: The state applies "income disregards" (deductions) to your earnings. This means your gross income can actually be significantly higher than the 300% limit, and you may still qualify.
• The Verdict:This opens the door for many working families to access full Medicaid benefits, including IHSS.

Source: Health First Colorado Buy-In Program for Children with Disabilities

Pathway 3: The "Golden Ticket" (HCBS Waivers)

This is the most important pathway for children with significant medical needs, and it is the one most families don't know about.

If your child qualifies for a Home and Community-Based Services (HCBS) waiver—such as the Children’s Extensive Support (CES) waiver or the Children's Habilitation Residential Program (CHRP)—the financial rules change completely.

• The Rule: For most waivers, the state waives (disregards) parental income entirely.
• Who Counts? The state looks only at the child’s income and assets (usually, the child must have less than $2,000 in their own name).
• The Verdict: Your household could earn a high six-figure income, but if your child meets the medical and functional criteria for the waiver, your child is eligible for Medicaid.

Sources: Children’s Extensive Support Waiver (CES) Information | Children's Habilitation Residential Program (CHRP) Information

Pathway 4: Community First Choice (CFC)

Community First Choice is a new option that expands access to home care services for Medicaid members.

• The Rule: If your child is eligible for Medicaid (via any of the pathways above), you may now access attendant care services through CFC without needing to be on a specific waiver or worry about waiver requirements.
• The Requirement: Your child must meet an "institutional level of care," meaning they require the level of support typically provided in a hospital or nursing facility.
• The Verdict: This program makes it easier to access Personal Care, Health Maintenance, and Homemaker services if your child is already Medicaid-eligible but were previously blocked by waiver caps or strict targeting criteria.

Source: Community First Choice (CFC) Program Details

Why Does This Matter?

Qualifying for Medicaid is the first step to accessing In-Home Support Services (IHSS). Once your child is enrolled in Medicaid (through any of the three pathways above), you can select an agency to help you become a paid caregiver.

At Caregivers First Choice, we believe family caregivers are the backbone of the healthcare system. Our model is built to reward your expertise with competitive wages and a support system that actually understands what your day-to-day life looks like.

Don't Assume—Verify.

The Medicaid system is complex, but you don't have to navigate it alone. If you have been assuming you aren't eligible for support, let's look at the facts together.

Contact Caregivers First Choice today. We can help point you toward the right resources to determine your eligibility so you can focus on what you do best: caring for your family.

Disclaimer: This post is for educational purposes only and does not constitute legal or financial advice. Medicaid eligibility is determined by the State of Colorado and County Departments of Human Services. Income limits are subject to change by the state.