New Jersey Medicaid Long-Term Care Eligibility for 2025
New Jersey Long-Term Care in 2025
New Jersey remains an income cap state, meaning that in order to qualify for Medicaid long-term care benefits, an applicant’s income must not exceed specific limits. In 2025, income exceeding the cap can still qualify if it is deposited into a Qualified Income Trust (QIT). This allows applicants with income above the threshold to become eligible.
Eligibility for 2025
1. Residency and Citizenship: Applicants must be New Jersey residents and either U.S. citizens or have proper immigration status.
2. Age/Disability: Applicants must be 65 or older, blind, or disabled. They must meet medical criteria consistent with the required level of care.
3. Income Limitations: Monthly income must be under $2,901 for an individual. This includes wages, Social Security benefits, pensions, annuities, and other income. Income exceeding this threshold can be redirected to a QIT to qualify.
4. Asset Limitations: Countable assets must not exceed $2,000 for individuals or $3,000 for married couples (if both apply). The state imposes a 5-year look-back period to ensure no assets were improperly transferred or sold below market value.
Exempt Assets in 2025:
- One primary residence with an equity limit of $1,097,000 if the applicant or their spouse resides there, or if the applicant has “Intent to Return.”
- One automobile, no equity limit.
- An irrevocable funeral trust or burial fund, no specified cap.
- Life insurance policies with a combined face value under $1,500 or term policies with no cash value.
- Personal effects, household furnishings, and small amounts of cash up to $2,000 (individual asset limit).
Spousal Rules for 2025:
The non-applicant (community) spouse may retain up to $157,920 in countable assets, with a minimum allowance of $31,584. If their income falls below $2,555, they can receive a Spousal Income Allowance from the applicant’s income. This allowance can increase based on housing expenses, with a maximum income cap of $3,948 per month.
New Jersey follows the “income first” rule, meaning the state considers the institutionalized spouse’s income first to meet the community spouse’s needs before allowing asset adjustments.
Long-Term Care Insurance Partnership in 2025:
The New Jersey Long-Term Care Partnership allows policyholders to protect assets equal to the policy’s benefit payout. For example, a policy with $155,000 in benefits protects $155,000 in assets when applying for Medicaid.
Programs Available in New Jersey in 2025:
New Jersey offers several programs to provide long-term care services in various settings, including:
- Managed Long-Term Services & Supports (MLTSS): Includes personal care, adult day care, home modifications, and nursing home care.
- Personal Preference Program (PPP): Provides participants with a budget to manage their care needs, allowing them to hire caregivers, including family members.
- Program of All-Inclusive Care for the Elderly (PACE): Combines Medicare and Medicaid benefits for comprehensive care, including dental and vision services.
- Money Follows the Person (I Choose Home NJ): Assists individuals transitioning from institutional care to community settings.
How to Apply for New Jersey Medicaid
Applications can be completed online at NJ FamilyCare, by contacting the county welfare agency, or by calling 1-800-701-0710. It is recommended to consult a Medicaid planner to ensure eligibility and avoid delays in application processing.
Further Resources
Visit the following for more information: