Medicaid Long-Term Care Guide in New Jersey
Long-term care eligibility, benefits, and how to apply through the New Jersey Department of Human Services, Division of Medical Assistance and Health Services.
What makes New Jersey Medicaid different
In New Jersey, Medicaid is called NJ FamilyCare, and specific to the elderly, NJ FamilyCare Aged, Blind, Disabled (ABD) Programs. While jointly funded by state and federal government, it is administered by the state within federally set parameters. 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.
Administered by the New Jersey Department of Human Services, Division of Medical Assistance and Health Services.
Program Types
Institutional / Nursing Home Medicaid
An entitlement; anyone who is eligible will receive assistance. Benefits are provided in Medicaid-certified nursing homes.
Level of care: Nursing Home
Home and Community Based Services (HCBS)
New Jersey no longer offers HCBS Medicaid Waivers for the aged. Long-term care services are now provided via a managed care system without enrollment caps, meaning there is no waiting list. Services are available at home, adult day care, adult family care homes, comprehensive personal care homes, and assisted living.
Level of care: Nursing Home
Regular Medicaid / Aged Blind and Disabled
An entitlement; persons who meet the eligibility requirements will receive services. While Regular Medicaid is not Long-Term Care Medicaid, some long-term care services, such as personal care assistance or adult day care, may be available.
Level of care: Help with ADLs
2026 New Jersey Medicaid Long-Term Care Eligibility for Seniors
Institutional / Nursing Home Medicaid*
Home and Community Based Services†
Regular Medicaid / Aged Blind and Disabled‡
*All of a beneficiary's monthly income, with the exception of a Personal Needs Allowance of $50.00 / month, Medicare premiums, and potentially a Needs Allowance for a non-applicant spouse, must go towards nursing home costs. This is called a Patient Liability.
†Based on one's living setting, a program beneficiary may not be able to keep monthly income up to this level.
‡Another pathway to Medicaid eligibility is through SSI. In New Jersey, persons who are determined eligible for SSI are automatically approved for Regular Medicaid, including long-term services and supports, given one meets the functional criteria.
Explore New Jersey Medicaid Programs
Compare programs, see caregiver pay rates, get step-by-step application guidance, and check your eligibility — all specific to New Jersey.
Long-term care Medicaid guide
Eligibility · Caregiver pay · How to apply · 2026 data
Important: Rates vary — contact your state Medicaid office for current figures. This tool provides general guidance, not legal or financial advice.
Compare Medicaid Programs — New Jersey
How the main LTC programs available in New Jersey compare side by side.
| Program | Pay | Pay type | Tax-free? | Spouse OK? | Waitlist? |
|---|---|---|---|---|---|
| Consumer-directed HCBS | $17–21/hr | Hourly wage | No | Usually no | Often |
| Structured Family Caregiving (SFC) | Not in New Jersey | Daily stipend | Yes | Usually no | Often |
| Personal Care Agreement | Market rate (from assets) | Private pay | No | Yes | No |
| VA Aid & Attendance | Up to $2,874/mo | Monthly pension | Yes | Yes | No |
New Jersey Medicaid programs
NJ MLTSS (Managed LTC)
Global Options Waiver
Sources: KFF (Jan 2026), medicaidplanningassistance.org (Feb 2026). Programs and rates change — verify with your state Medicaid office.
How Family Caregivers Get Paid Through Medicaid in New Jersey
If you're a family member providing care, you may be able to get paid through Medicaid — often at rates comparable to a home care agency.
Consumer-directed care — hourly pay
Available in New JerseyHow it works: The person receiving care becomes the "employer" — they hire you and a fiscal intermediary handles payroll, taxes, and paperwork on their behalf. You receive a paycheck just like a regular job.
How to apply: DMAHS · nj.gov/humanservices/dmahs
Personal Care Agreement — private pay from assets
Available to any familySources: KFF Medicaid Home Care Survey 2025 (Jan 2026), Careforth FAQ (Jan 2026), IRS Notice 2014-7.
How to Apply for Medicaid Long-Term Care in New Jersey
What to expect when applying for LTC Medicaid and getting family caregiver pay set up in New Jersey. The process typically takes 45–90 days from application to first paycheck.
Apply in New Jersey: DMAHS · nj.gov/humanservices/dmahs
Medicaid Eligibility Screener — New Jersey
Answer 7 quick questions — we'll check the financial and care requirements for New Jersey and explain what each one means.
What is the marital status of the person who needs care?
Medicaid looks at only the applicant's income and assets — but being married triggers special protections that let the healthy spouse keep significantly more money.
Sources
- CMS Medicaid — eligibility, HCBS waivers, and long-term services medicaid.gov/medicaid/eligibility
- CMS Medicaid — Home & Community-Based Services (HCBS) medicaid.gov/medicaid/home-community-based-services
- Social Security Administration — SSI Federal Benefit Rate (2026 figures) ssa.gov/oact/cola/SSI.html
- CMS — Spousal Impoverishment standards (CSRA & MMMNA) medicaid.gov/medicaid/eligibility/spousal-impoverishment
- CMS — Estate Recovery and the 5-year lookback period medicaid.gov/medicaid/eligibility/estate-recovery
- IRS Notice 2014-7 — Tax treatment of Medicaid caregiver payments irs.gov/individuals/certain-medicaid-waiver-payments-may-be-excludable-from-income
Educational guidance only — not legal or financial advice. Your state Medicaid office determines actual eligibility.
Key Rules at a Glance
- Nearly any income from any source is counted towards Medicaid's income limit, including employment wages, alimony, pension payments, SSDI, SSI, IRA withdrawals, and stock dividends.
- Nationally, Holocaust restitution payments are not counted as income.
- In NJ, the VA Aid & Attendance Allowance, which is above and beyond the Basic VA Pension, does not count.
- When only one spouse applies for Nursing Home Medicaid or HCBS, only the applicant's income is counted.
- The MMMNA is $2,643.75 (eff. 7/1/25 – 6/30/26). If a non-applicant spouse's income falls under 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 MMMNA of $4,066.50 / month.
- For Regular Medicaid, both spouses' income is counted. There is no MMMNA for a non-applicant spouse.
- In New Jersey, persons determined eligible for SSI are automatically approved for Regular Medicaid.
- Countable assets include cash, stocks, bonds, investments, cryptocurrency, bank accounts (money market, savings, checking), and real estate in which one does not reside.
- In NJ, 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.
- 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 the couple's assets, up to $162,660 (2026). If the non-applicant's share is under $32,532, up to $32,532 can be retained.
- There is no CSRA for Regular Medicaid.
- The 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 this is not the case, there is a home equity interest limit of $1,097,000 (in 2026).
- Home equity is the value of the home minus any outstanding debt. Equity interest is the amount of equity owned by the applicant.
- If neither the applicant nor qualifying family live in the home, the applicant must have 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 Medicaid's Estate Recovery Program. After a beneficiary's death, New Jersey's Medicaid agency attempts reimbursement of care costs through the deceased's estate.
- New Jersey has a 5-year (60-month) Look-Back Period for Nursing Home Medicaid and Home and Community Based Services applications.
- Medicaid checks all asset transfers to ensure none were gifted or sold for less than fair market value.
- Violations, even unintentional ones, result in a period of Medicaid ineligibility.
- The Look-Back Rule does not apply to Regular Medicaid.
- The U.S. Federal Gift Tax Rule ($19,000 per recipient in 2026) does not extend to Medicaid eligibility — gifting under this rule still violates the Look-Back Period.
- MMMNA: $2,643.75 · CSRA: $162,660 · CSRA Min: $32,532
- When only one spouse applies for Nursing Home Medicaid or HCBS, only the applicant's income is counted.
- The MMMNA is $2,643.75 (eff. 7/1/25 – 6/30/26). Income can be transferred from the applicant spouse if the non-applicant's income is below this level.
- A non-applicant can increase their Spousal Income Allowance if housing/utility costs exceed the shelter standard of $793.13 / month, up to a maximum of $4,066.50 / month.
- The CSRA allows the non-applicant spouse to retain 50% of assets up to $162,660 (min $32,532) in 2026.
- For Regular Medicaid, both spouses' income is counted and there is no MMMNA or CSRA.
- Medically Needy Pathway — New Jersey has a Medically Needy Program (Special Medicaid Program, Medically Needy Segment) for Regular Medicaid applicants over the income limit. The MNIL is $367 / month for an individual and $434 / month for a couple. 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).
- Qualified Income Trusts (QITs) — Also called 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.
- Asset Spend-Down — Spend excess assets on non-countable items such as home modifications (wheelchair ramps, roll-in showers, stair lifts), prepaying funeral/burial expenses, and paying off debt. Keep documentation as proof the Look-Back Rule was not violated.
- Medicaid Planning — Work with a Medicaid Planning Professional to employ strategies to become eligible and protect your home from Medicaid's Estate Recovery Program.
New Jersey offers both a Medically Needy Spend-Down (for Regular Medicaid) and Qualified Income Trusts / Miller Trusts (for Nursing Home Medicaid and HCBS).
New Jersey Medicaid 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. Personal care can be 'self-directed' and 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 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.
How to Apply
- Apply online at NJFamilyCare
- 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.
More New Jersey Long-Term Care Resources
Take the Next Step for New Jersey Medicaid
Find out if you qualify or see how Medicaid fits into your overall long-term care plan.
Sources & references
Verified May 2026- Centers for Medicare & Medicaid Services — Long-Term Services & Supports
- Administration for Community Living — State Medicaid Agencies
- Centers for Medicare & Medicaid Services — Medicaid Eligibility
- American Council on Aging — About Medicaid Planning Assistance
- New Jersey Department of Human Services, Division of Medical Assistance and Health Services — New Jersey Medicaid — Official site