Medicaid Long-Term Care Guide in New Mexico
Long-term care eligibility, benefits, and how to apply through the New Mexico Health Care Authority.
What makes New Mexico Medicaid different
In New Mexico, Medicaid is called Centennial Care. While jointly funded by the state and federal government, the state administers the program under federally set parameters. The New Mexico Health Care Authority is the administering agency. In addition to nursing home care, NM Medicaid pays for services and supports to assist seniors in living at home or in assisted living.
Administered by the New Mexico Health Care Authority.
Program Types
Institutional / Nursing Home Medicaid
An entitlement; anyone who is eligible will receive assistance. Benefits are provided in Medicaid-certified nursing home facilities.
Level of care: Nursing Home
Medicaid Waivers / Home and Community Based Services (HCBS)
Not an entitlement; the number of participants is limited and wait lists may exist. Services are meant to delay / prevent the need for nursing home care and may be provided at home, adult day care, or in 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 Mexico Medicaid Long-Term Care Eligibility for Seniors
Institutional / Nursing Home Medicaid*
Medicaid Waivers / 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 $97 / month, Medicare premiums, and possibly a Needs Allowance for a non-applicant spouse, must be paid to the nursing home. 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 Mexico, 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 Mexico Medicaid Programs
Compare programs, see caregiver pay rates, get step-by-step application guidance, and check your eligibility — all specific to New Mexico.
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 Mexico
How the main LTC programs available in New Mexico compare side by side.
| Program | Pay | Pay type | Tax-free? | Spouse OK? | Waitlist? |
|---|---|---|---|---|---|
| Consumer-directed HCBS | $14–17/hr | Hourly wage | No | Usually no | Often |
| Structured Family Caregiving (SFC) | Not in New Mexico | 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 Mexico Medicaid programs
Mi Via Waiver
CoLTS 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 Mexico
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 MexicoHow 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: HSD · hsd.state.nm.us/mad
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 Mexico
What to expect when applying for LTC Medicaid and getting family caregiver pay set up in New Mexico. The process typically takes 45–90 days from application to first paycheck.
Apply in New Mexico: HSD · hsd.state.nm.us/mad
Medicaid Eligibility Screener — New Mexico
Answer 7 quick questions — we'll check the financial and care requirements for New Mexico 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 all income 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 NM, the VA Aid & Attendance, which is above and beyond the Basic VA Pension, does not count.
- When only one spouse applies for Nursing Home Medicaid or a Waiver, 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 is 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 towards the applicant's eligibility.
- In New Mexico, 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 New Mexico, IRAs / 401Ks are counted as assets.
- Non-countable (exempt) assets include personal belongings, household furnishings, an automobile, burial accounts (limited to $1,500 if not prepaid and irrevocable), 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 falls below $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 $730,000 (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.
- 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 Mexico's Medicaid agency attempts reimbursement of care costs through the deceased's estate.
- New Mexico has a 60-month (5-year) Look-Back Period for Nursing Home Medicaid and Medicaid Waiver applications.
- Medicaid checks all asset transfers by the applicant and/or their spouse to ensure none were gifted or sold for less than fair market value.
- Violations result in a Penalty 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 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 a Waiver, 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 CSRA.
- Qualified Income Trusts (QITs) — Also called Miller Trusts, or in New Mexico, Income Diversion Trusts. Excess income is deposited into an irreversible trust and no longer counts towards Medicaid's income limit. Trust funds can only be used for specific purposes such as a Spousal Income Allowance and contributing towards long-term care costs. Upon the participant's death or disenrollment, remaining funds must be paid to the state of New Mexico.
- Asset Spend-Down — Spend excess assets on non-countable items such as home improvements (replacing roofs, updating plumbing), home modifications (wheelchair ramps, roll-in showers, stair lifts), vehicle modifications (wheelchair lifts, adaptive controls), 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 Mexico does not have a Medically Needy / Spend-Down program. Qualified Income Trusts (Miller Trusts / Income Diversion Trusts) are the pathway for persons over the income limit.
New Mexico Medicaid Programs
Centennial Care Community Benefit
Provides a variety of Home and Community Based Services to promote independent living, including assisted living services, adult day health care, home health aides, personal care assistance, and home modifications. Program participants can self-direct their own care, including hiring one's adult child or spouse to provide care assistance, or go through a provider agency.
Program of All-Inclusive Care for the Elderly (PACE)
Combines the benefits of Medicaid, including long-term care, and Medicare into a single program. Additional benefits, such as dental and eye care, may be available.
How to Apply
- Apply online at Yes New Mexico
- Apply by phone at 1-855-637-6574
- Submit a completed application (HCA-100) by fax to 1-855-804-8960
- Mail to Central ASPEN Scanning Area (CASA), PO Box 830, Bernalillo, NM 87004
- Apply in person at a local Human Services Department (HSD) Income Support Division (ISD) office
- Call ISD Customer Service Center at 1-800-283-4465 for information and assistance
Persons should not apply without being certain they meet all eligibility requirements. Seniors who are uncertain or over the limits should consider Medicaid planning for the best chance of acceptance.
More New Mexico Long-Term Care Resources
Take the Next Step for New Mexico 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 Mexico Health Care Authority — New Mexico Medicaid — Official site