Long-Term Care Medicaid in New Jersey: 2026 Guide
In New Jersey, Medicaid is part of NJ FamilyCare and is run by the Division of Medical Assistance and Health Services (DMAHS) in the New Jersey Department of Human Services. Eligibility for long-term care is decided by your County Welfare Agency (county board of social services). Long-Term Care Medicaid can pay for nursing home care and for care at home or in assisted living through Managed Long Term Services and Supports (MLTSS). This guide explains the 2026 rules in plain language.
At a glance: New Jersey 2026 figures
| Item | 2026 figure |
|---|---|
| Income limit (applicant) | $2,982 a month. Higher income needs a Qualified Income Trust |
| Asset limit (single applicant) | $2,000 |
| Asset limit (couple, both applying) | $3,000 |
| Home equity limit | $1,130,000 |
| Spouse at home: resource allowance (CSRA) | Minimum $32,532 / maximum $162,660 |
| Spouse at home: monthly income allowance (MMMNA) | Minimum $2,705 (from July 1, 2026) / maximum $4,066.50 |
| Personal needs allowance (nursing home) | $50 a month |
| Look-back period | 60 months (5 years) |
| Penalty divisor | $420.67 a day (from April 1, 2026) |
Figures last updated for 2026. Sources are listed at the end of this page.
Figures change periodically. Double-check current amounts with NJ FamilyCare (DMAHS) before relying on them.
What Long-Term Care Medicaid covers in New Jersey
Nursing home care. Medicaid pays for care in a certified nursing facility. You pay most of your income toward the cost each month, and Medicaid pays the rest.
MLTSS (Managed Long Term Services and Supports). This is New Jersey’s main long-term care program. You join an NJ FamilyCare health plan, and a care manager arranges services such as personal care, home health, adult day health, home-delivered meals, respite, changes to the home, and care in assisted living or a nursing home. MLTSS is for people who need a nursing facility level of care and meet the financial rules.
PACE (Program of All-Inclusive Care for the Elderly). For people 55 and older in a PACE service area who need a nursing facility level of care. A PACE team provides and coordinates all care, often at a PACE center.
Assisted living. Through MLTSS, Medicaid can pay for care services in a participating assisted living residence. Medicaid does not pay room and board, and not every residence accepts Medicaid. Ask the residence and your health plan.
Who qualifies
A person generally must:
- be 65 or older, or blind or disabled;
- live in New Jersey and be a U.S. citizen or qualified non-citizen;
- need a nursing facility level of care. The assessment is done by the state’s Office of Community Choice Options, a health plan care manager or an Aging and Disability Resource Connection (ADRC);
- meet the income and asset rules below, as decided by the County Welfare Agency.
Income rules
New Jersey is an income-cap state for long-term care. In 2026, the limit is $2,982 a month in gross income.
If your income is above $2,982, you can still qualify by setting up a Qualified Income Trust (QIT), also called a Miller trust. Income above the cap is placed in the trust each month and used toward the cost of care. The trust must follow New Jersey’s rules.
Once you are on Medicaid in a nursing home, most of your income goes to the facility. You keep a personal needs allowance of $50 a month, and money can be set aside for a spouse at home and for health insurance premiums.
Asset rules
In 2026, a single applicant can have up to $2,000 in countable assets. For a couple who both need care, the limit is $3,000.
Countable assets include cash, bank accounts, CDs, stocks, bonds, mutual funds, retirement accounts that can be cashed in, life insurance cash value above small amounts and real estate other than the home.
Usually exempt:
- Your home (equity up to $1,130,000) if you live there or plan to return, or a spouse or dependent relative lives there
- One vehicle
- Household goods and personal belongings
- Irrevocable prepaid funeral arrangements and burial plots
Spousal protections
- Assets: The spouse at home keeps half of the couple’s countable assets, but not less than $32,532 or more than $162,660 in 2026, plus the home, one car and belongings.
- Income: The spouse at home keeps their own income. If it is below a base allowance of $2,705 a month (from July 1, 2026), part of the applicant’s income can go to them. Extra is allowed for housing costs above $811.50 a month, using a standard utility allowance of $878.
Look-back and penalties
When you apply, New Jersey looks back at the 60 months (5 years) before the application date. This is called the look-back period. The state checks whether you, or your spouse, gave away money or property, or sold something for less than it was worth, during that time.
Common examples of transfers that can cause a problem:
- Cash gifts to children or grandchildren, even small yearly gifts. (A gift that is fine for federal gift-tax purposes can still count for Medicaid.)
- Adding a child’s name to a house deed or bank account in a way that gives them part ownership.
- Selling a house or car to a relative for much less than it is worth.
- Paying a family member for care without a written agreement made at the time.
Some transfers are allowed, such as transfers between spouses, or transferring a home to a child who is blind or disabled.
How the penalty works. If the state finds a transfer that is not allowed, it does not deny Medicaid forever. Instead, it sets a penalty period: a stretch of time when Medicaid will not pay for long-term care. The state divides the amount given away by the penalty divisor ($420.67 a day).
Example: Suppose you gave your daughter $50,000 three years before applying. $50,000 divided by $420.67 is about 119 days (almost 4 months) without Medicaid payment for long-term care.
The penalty period starts only once you have applied, are otherwise eligible, and are in (or need) long-term care. This is why gifts made while someone is healthy can still matter years later. If a gift is returned in full, the penalty can be removed.
Estate recovery in New Jersey
New Jersey’s estate recovery program is run by DMAHS.
- What is recovered: Medicaid paid for services from age 55, and for people permanently in a nursing facility. New Jersey’s rules can reach a wide range of services and property; ask DMAHS what applies.
- When it is put off: federal rules prevent recovery while a spouse is alive, or if there is a child under 21 or a child who is blind or disabled.
- Hardship waivers: DMAHS can waive or put off recovery in some situations. Ask DMAHS for the current rules.
- Family members and executors can contact DMAHS Estate Recovery directly with questions.
How to apply
- For long-term care (nursing home or MLTSS): apply through your County Welfare Agency. The DMAHS website lists each county’s office and the forms to use.
- Online: NJ FamilyCare. Ask your County Welfare Agency whether an online application is right for long-term care in your situation.
- For the care assessment: your County Welfare Agency, the ADRC or a health plan care manager will arrange it.
- For PACE: contact the PACE organization that serves your area.
After you apply. Your County Welfare Agency will send you a written notice saying whether you qualify, from what date, and how much of your income goes toward your care each month. If you disagree with a decision, you have the right to ask for a fair hearing. The notice explains how to ask and the deadline for asking. Keep copies of everything you send and receive, and report changes in income, assets or address when they happen.
Gather what you can before you apply. The caseworker may ask for:
- Photo ID, Social Security card and Medicare card
- Proof of age and of U.S. citizenship or immigration status
- Proof that you live in the state (for example, a utility bill or lease)
- Proof of all income: Social Security award letter, pension statements, annuity statements
- Bank, credit union and investment statements (often for the full 60-month look-back period)
- Deeds, property tax bills and the value of any real estate
- Life insurance policies (showing cash value) and prepaid funeral or burial contracts
- Vehicle titles
- Health insurance cards and long-term care insurance policies
- Power of attorney or guardianship papers, if someone is applying for you
- For a spouse at home: their income and assets too, since both spouses’ assets are counted at the start
If you cannot find a document, apply anyway and tell the caseworker. They can explain what else is accepted.
Free public help in New Jersey
- DMAHS and your County Welfare Agency: Medicaid applications and eligibility.
- Aging and Disability Resource Connection (ADRC) and county Area Agencies on Aging: local information on long-term care options and MLTSS.
- State Health Insurance Assistance Program (SHIP): New Jersey’s free Medicare counseling program, through the Division of Aging Services.
- New Jersey Long-Term Care Ombudsman: free advocates for residents of nursing homes and assisted living.
Recent and upcoming changes
A 2025 federal law (Public Law 119-21) makes two changes that affect Long-Term Care Medicaid in every state, including New Jersey:
- Retroactive coverage gets shorter on January 1, 2027. Today, Medicaid can pay bills from up to 3 months before the month you apply, if you would have qualified then. For applications from January 1, 2027, this window shrinks to 2 months for older adults and people with disabilities. In plain terms: from 2027, it matters more to apply soon after care starts, so that earlier bills are not left unpaid.
- Home equity cap on January 1, 2028. States will no longer be able to set a home equity limit above $1,000,000 (except for some farm property). New Jersey’s 2026 home equity limit is $1,130,000, which is above the new cap. New Jersey will have to lower its limit to no more than $1,000,000 by January 1, 2028.
The federal amounts that change each year (for example, the allowances for a spouse at home) will be updated on this page for 2027 once they are published.
State programs
Each program below has its own page with who qualifies, services, how to apply and waiting lists:
Frequently asked questions
What is MLTSS? It is New Jersey’s managed care program for long-term care. A health plan care manager arranges services at home, in assisted living or in a nursing home.
My income is over $2,982 a month. Can I still qualify? Yes, with a Qualified Income Trust. Income above the cap goes into the trust each month and is used toward your care.
How much can my spouse keep? In 2026, half of the couple’s countable assets, at least $32,532 and up to $162,660, plus the home, a car and belongings, and income of at least $2,705 a month.
Does Medicaid pay for assisted living in New Jersey? It can pay for care services through MLTSS in a participating residence. It does not pay room and board.
How long is the penalty for a gift? Divide the gift by $420.67 to get the number of days. A $20,000 gift would mean about 48 days without Medicaid payment for long-term care.
Will the state take my home after I die? DMAHS can seek repayment from the estate, which can include the home. Recovery is put off while a spouse or a young or disabled child survives, and hardship waivers exist.
Figures change periodically. Double-check current amounts with NJ FamilyCare (DMAHS) before relying on them.
Sources
- DMAHS, Medicaid Communication 26-01, 2026 income and resource standards
- DMAHS, Medicaid Communication 26-04, penalty divisor
- DMAHS, Medicaid Communication 26-05, community spouse maintenance
- NJ FamilyCare, ABD and MLTSS brochure (2026)
- CMS, New Jersey State Plan, personal needs allowance (TN 17-0008)
- NJ FamilyCare
- CMS, 2026 SSI and spousal impoverishment standards
- Public Law 119-21 (2025)
Last updated for 2026. General information only, not legal or financial advice. Medicaid Answers is a free educational resource published by Medicaid Answers Foundation.