Long-Term Care Planning in New Jersey: Costs, Medicaid & Your Options (2026 Guide)

New Jersey's long-term care costs are well above national averages — nursing home care averages $12,775 per month, approximately 33% above the national average of $9,581, while assisted living averages $8,710 per month, approximately 40% above the national average of $6,200. Home care averages $7,245 per month, approximately 9% above the national rate of $6,673. In New Jersey, Medicaid is called NJ FamilyCare, and specific to the elderly, NJ FamilyCare Aged, Blind, Disabled (ABD) Programs. It is administered by the New Jersey Department of Human Services, Division of Medical Assistance and Health Services. For Nursing Home Medicaid, the income limit is $2,982/month — but all of a beneficiary's monthly income, with the exception of a $50/month Personal Needs Allowance, Medicare premiums, and potentially a Needs Allowance for a non-applicant spouse, must go towards nursing home costs. The asset limit is $2,000 for individuals. A key distinction: New Jersey's HCBS program is an entitlement with no waiting list, delivered through the MLTSS managed care system. This guide covers what care costs in New Jersey, how to qualify for Medicaid, and what options exist for veterans and family caregivers in Newark, Jersey City, Paterson, Trenton, and across the Garden State.

New Jersey's Aging Population: The Numbers Behind the Need

New Jersey is home to more than 1.8 million residents aged 60 or older — a significant portion of the state's roughly 9.3 million total population. The senior population is spread across the state's 21 counties, with the largest concentrations in Bergen County, Middlesex County, Essex County (Newark), Monmouth County, and Ocean County (Toms River). Other significant aging communities include Camden County (Cherry Hill), Morris County (Morristown), Burlington County, Passaic County (Paterson), and Hudson County (Jersey City).

New Jersey's geography — one of the most densely populated states in the nation — means that care facilities are generally accessible, but costs reflect the high cost of living across the state. Northern New Jersey (Bergen, Essex, Morris counties) tends to have the highest costs due to proximity to New York City, while southern New Jersey and the Shore communities offer somewhat lower rates.

Unpaid Caregivers in New Jersey: Scale and Impact

An estimated 1.1 million unpaid family caregivers in New Jersey provide care to aging relatives and adults with disabilities. According to AARP research, family caregivers nationwide spend an average of $7,242 per year in out-of-pocket costs related to caregiving.

New Jersey offers strong support for family caregivers through the Personal Preference Program (PPP), which gives participants a monthly budget to manage their own long-term care needs — including the ability to hire family members, even spouses, as paid caregivers. The Managed Long Term Services & Supports (MLTSS) program also provides personal care, respite care, and adult day care as alternatives to institutional placement.

What Long-Term Care Costs in New Jersey

New Jersey's care costs vary by type of care:

• Assisted Living: $8,710 per month — approximately 40% above the national average of $6,200
• Nursing Home (semi-private room): $12,775 per month — approximately 33% above the national average of $9,581
• Home Care (home health aide): $7,245 per month — approximately 9% above the national average of $6,673
• Adult Day Care: $2,167 per month — approximately 5% above the national average of $2,058

At these rates, a three-year nursing home stay in New Jersey costs approximately $460,000 — while home care totals roughly $261,000 over the same period. Assisted living, at $8,710/month, totals approximately $314,000 over three years. For a detailed breakdown of care costs by type and how New Jersey compares to other states, visit our New Jersey Care Costs page.

How to Qualify for New Jersey Medicaid: Eligibility Rules for 2026

NJ FamilyCare is administered by the New Jersey Department of Human Services, Division of Medical Assistance and Health Services. In addition to nursing home care, NJ Medicaid pays for services in adult foster care homes, comprehensive personal care homes, assisted living facilities, and non-medical supports to help frail seniors live at home. Consulting with a New Jersey elder law attorney or Certified Medicaid Planner early can help families avoid costly mistakes. Eligibility rules vary by program type:

• Nursing Home Medicaid (Institutional): Income limit of $2,982/month. All of a beneficiary's monthly income, with the exception of a $50/month Personal Needs Allowance, Medicare premiums, and potentially a Needs Allowance for a non-applicant spouse, must go towards nursing home costs (Patient Liability). Asset limit of $2,000 (single) or $3,000 (married couple, both applying). When only one spouse applies, the non-applicant spouse may retain up to $162,660 in assets. This is an entitlement — anyone who qualifies receives benefits.
• Home and Community Based Services (HCBS): Income limit of $2,982/month. Asset limit of $2,000 (single) or $3,000 (couple, both applying). New Jersey no longer offers HCBS Medicaid Waivers for the aged — long-term care services are now provided via the MLTSS managed care system without enrollment caps. This is an entitlement — there is no waiting list.
• Regular Medicaid / Aged Blind and Disabled: Income limit of $1,330/month (single) or $1,803.33/month (couple) (eff. 1/1/26 – 12/31/26). Asset limit of $4,000 (single) or $6,000 (couple). This is an entitlement. Another pathway: persons determined eligible for SSI are automatically approved for Regular Medicaid in New Jersey.

New Jersey applies a 60-month (5-year) look-back period for Nursing Home Medicaid and HCBS applications. Asset transfers during this period — including gifts to family members — can trigger a penalty period of Medicaid ineligibility. The federal $19,000 Gift Tax exclusion (2026) does NOT apply to Medicaid's look-back rules. The Look-Back Period does not apply to Regular Medicaid. For the full New Jersey Medicaid eligibility breakdown, see our New Jersey Medicaid Guide.

Spousal Protections and Community Spouse Resource Allowance

When one spouse applies for Nursing Home Medicaid or HCBS in New Jersey, only the applicant spouse's income is counted. The Community Spouse Resource Allowance (CSRA) allows the non-applicant spouse to retain 50% of the couple's assets, up to $162,660 (2026). If the non-applicant's share falls below $32,532, up to $32,532 can be retained.

New Jersey sets the Minimum Monthly Maintenance Needs Allowance (MMMNA) at $2,643.75 per month (eff. 7/1/25 – 6/30/26). If the non-applicant spouse's income falls below this amount, income can be transferred from the applicant spouse. A non-applicant spouse can increase their Spousal Income Allowance if housing/utility costs exceed a shelter standard of $793.13/month (eff. 7/1/25 – 6/30/26), up to a maximum of $4,066.50/month. For Regular Medicaid, both spouses' income is counted and there is no MMMNA or CSRA.

New Jersey Medicaid Programs: MLTSS and Community-Based Options

New Jersey offers several Medicaid-funded long-term care programs:

• Managed Long Term Services & Supports (MLTSS) Program: Via this managed care program, seniors can receive nursing home care, as well as a variety of care services in their homes, adult family care homes, comprehensive personal care homes, and assisted living residences. Potential benefits may include personal care, light housecleaning, adult day care, home modifications, respite care, and medical alert services.
• Personal Preference Program (PPP): Program participants are given a monthly budget to manage their own long-term care needs. Allowable expenses include assistive technologies, home modifications, adult day care, and personal care services. Beneficiaries can choose their own care providers, including the ability to hire family members, even spouses.
• Program of All-Inclusive Care for the Elderly (PACE): The benefits of Medicaid, including long-term care services, and Medicare are combined into one comprehensive program. Additional benefits such as dental and eye care may be available.
• Money Follows the Person (I Choose Home NJ): A federal program that helps institutionalized persons who are eligible for Medicaid to transition back home or into the community.

Qualifying When Over the Limits: Miller Trusts, Medically Needy, and Asset Strategies

New Jersey offers both Qualified Income Trusts (Miller Trusts) and a Medically Needy Program, providing multiple pathways for applicants over the income or asset limits:

• Qualified Income Trusts (QITs) / Miller Trusts: Income over Medicaid's limit is deposited into an irreversible QIT and is not counted towards the income limit. Trust funds can only be used for specific purposes like health insurance premiums and medical expenses. New Jersey must be listed as beneficiary upon the Medicaid recipient's death.
• Medically Needy Program (Special Medicaid Program): For Regular Medicaid applicants over the income limit. The MNIL is $367/month for individuals and $434/month for couples. The spend-down is calculated for a 6-month period. Medical bills and health insurance premiums can be used. The medically needy asset limit is $4,000 (individual) and $6,000 (couple).
• Asset Spend-Down: Spend excess assets on non-countable items — home modifications (wheelchair ramps, roll-in showers, stair lifts), prepaying funeral/burial expenses, and paying off debt. Keep documentation as proof Medicaid's look-back rule was not violated.
• Medicaid Planning: Work with a Medicaid Planning Professional to employ legal strategies for eligibility and protect your home from Medicaid's Estate Recovery Program.

Asset Rules: What Counts and What Doesn't

Countable assets in New Jersey include cash, stocks, bonds, investments, cryptocurrency, bank accounts (money market, savings, checking), and real estate in which one does not reside. In New Jersey, IRAs / 401Ks are counted as assets. Non-countable (exempt) assets include personal belongings, household furnishings, an automobile, irrevocable burial trusts, and generally one's primary home.

New Jersey's asset limit is $2,000 for an individual and $3,000 for a married couple (both applying) for Nursing Home and HCBS Medicaid. For Regular Medicaid, the asset limit is $4,000 (single) or $6,000 (couple). All assets of a married couple are considered jointly owned regardless of the Medicaid program. The CSRA allows the non-applicant spouse to retain 50% of assets up to $162,660 (minimum $32,532). There is no CSRA for Regular Medicaid. In New Jersey, the VA Aid & Attendance Allowance (above and beyond the Basic VA Pension) does not count as income. Nationally, Holocaust restitution payments are not counted as income.

Veterans and Long-Term Care in New Jersey

New Jersey has a significant veteran population, with facilities including the VA New Jersey Health Care System (East Orange and Lyons campuses), VA community-based outpatient clinics across the state, and the New Jersey Veterans Memorial Homes in Menlo Park, Paramus, and Vineland.

Notably, New Jersey does not count VA Aid & Attendance as income for Medicaid eligibility purposes — making it one of the more favorable states for veterans applying for Medicaid while receiving VA benefits. Veterans should factor this advantage into their long-term care planning strategy. For a comprehensive overview of veteran long-term care benefits, see our Veterans Long-Term Care Guide.

Planning Ahead: How to Pay for Nursing Home Care in New Jersey

Understanding how to pay for nursing home care in New Jersey — or any long-term care setting — requires evaluating multiple funding sources. With nursing home costs at $12,775/month (33% above the national average), a 60-month look-back period, and a $2,000 asset limit, advance planning is essential. New Jersey long-term care insurance policies, personal savings, veterans benefits, and Medicaid each play a role. Key steps include:

• Understanding your current financial position relative to NJ FamilyCare eligibility thresholds
• Knowing that New Jersey's HCBS program is an entitlement with no waiting list — delivered through managed care (MLTSS)
• Taking advantage of the Personal Preference Program's option to hire family members, including spouses, as paid caregivers
• Leveraging New Jersey's MMMNA ($2,643.75) and the shelter cost exception (up to $4,066.50) to protect the non-applicant spouse's income
• Recognizing that New Jersey does not count VA Aid & Attendance as income — a significant advantage for veteran families
• Understanding that New Jersey offers both Miller Trusts and a Medically Needy Program — two pathways for applicants over the income limit
• Noting that New Jersey's home equity limit of $1,097,000 is among the highest in the nation — and that the home exemption lasts up to six months
• Consulting with a New Jersey elder law attorney or Certified Medicaid Planner to protect assets and avoid look-back penalties

Estate Recovery: Protecting Your Home in New Jersey

New Jersey operates a Medicaid Estate Recovery Program (MERP), which allows the state to seek reimbursement from a deceased Medicaid beneficiary's estate for long-term care costs paid by Medicaid. This can include the family home if proper protections are not in place. The primary home is automatically exempt if the applicant's spouse, child under 21, or permanently blind or disabled child (of any age) lives in it.

If no qualifying family member lives in the home, there is a home equity interest limit of $1,097,000 (in 2026) — among the highest in the nation. If neither the applicant nor qualifying family live in the home, the applicant must demonstrate Intent to Return. The home exemption lasts up to six months. There is no home equity interest limit for Regular Medicaid. The home is NOT exempt from estate recovery — families should consult a New Jersey elder law attorney to explore legal protections.

Regional Cost Variations Across New Jersey

Long-term care costs in New Jersey vary by region. Northern New Jersey (Bergen, Essex, Morris, Passaic counties) typically sees the highest costs due to proximity to New York City and the high cost of living. Central New Jersey (Middlesex, Mercer, Monmouth counties) represents a mid-to-high-range market with Princeton, Edison, and the Shore communities. Southern New Jersey (Camden, Burlington, Gloucester, Atlantic counties) generally has lower costs, with Cherry Hill, Toms River, and Atlantic City offering more affordable options — though availability varies. Ocean County has a large retirement-age population with growing demand for senior services.

Application Timeline and Process

New Jersey Medicaid applications can be submitted through several channels:

• Apply online at NJ FamilyCare (njfamilycare.org)
• Complete and submit an application to one's county welfare agency
• Call 1-800-701-0710 to apply over the phone
• Contact a county welfare agency or local Area Agency on Aging office for program questions and application assistance

Applicants must be certain they meet the eligibility criteria prior to submitting an application. Seniors with income and/or assets greater than allowable amounts should strongly consider Medicaid Planning. Processing times vary but typically take 45–90 days.

Federal Policy Update: One Big Beautiful Bill Act (OBBBA)

The One Big Beautiful Bill Act (OBBBA) includes approximately $1 trillion in Medicaid cuts over 10 years. While Nursing Home Medicaid is largely protected from future funding reductions, Home and Community Based Services (HCBS) — including New Jersey's MLTSS program, Personal Preference Program, PACE, and I Choose Home NJ — are likely targets for cuts. This law is still facing legal challenges. Families relying on or planning to use HCBS should monitor developments and consider applying early.

Last updated: September 2026. Data sources: New Jersey Department of Human Services / Division of Medical Assistance and Health Services, CareScout 2025 care cost survey (updated March 2026). All Medicaid figures reflect 2026 eligibility thresholds. This guide is for informational purposes only and does not constitute legal or financial advice.