Medicaid for nursing home and home care in New Jersey

Who qualifies

You must meet three tests: a care need, an income test and an asset test.

• Care need: you need "nursing home level of care." This usually means you need hands-on help with three or more daily activities, such as bathing, dressing or moving around. You do not have to live in a nursing home to qualify.
• Income: monthly income up to the limit below. If your income is higher, you can still qualify with a Qualified Income Trust (see below).
• Assets: countable assets at or below the limit on the first day of each month. If you are over the limit on the first day, you are not eligible for that whole month.

What counts and what does not

• Not counted: your home (if your equity is under the limit) and the vehicle you use.
• Life insurance: if all your policies together have a face value over $1,500, their cash value counts as an asset. You do not have to cash in the policy, but the value is counted.
• Married couples: if only one of you needs care, part of your joint assets is set aside for the spouse at home. That share is between the minimum and maximum in the table.
• Gifts and transfers: New Jersey looks back five years before your first application. Money or property given away or sold for less than it is worth can cause a penalty, which is a period when Medicaid will not pay for your care. Transfers you cannot explain with papers are treated as gifts.

Qualified Income Trust (QIT)

If your income is over $2,982 a month, you need a Qualified Income Trust. It is a simple trust paper plus a separate bank account. Each month, the income above the limit goes into the account. Once the trust is signed and the account is funded, you can meet the income test.

• The trust must be set up and funded in the month you want coverage to start.
• It may hold only income, never savings.
• Someone other than you must be the trustee.
• The money can only be used for your cost of care and allowed deductions. After you die, the state is repaid from what is left, up to what Medicaid spent.

New Jersey publishes a free QIT template on the DMAHS website (nj.gov/humanservices/dmahs/clients/mtrusts.html).

What MLTSS pays for

MLTSS gives care where you choose to live: your home, an assisted living home, a group home or a nursing home. Services come through the NJ FamilyCare health plan you are enrolled in.

If you live in a nursing home, almost all of your income goes toward the cost of your care. You keep a personal needs allowance of $50 a month for things like clothing and haircuts. A married person can also leave income for a spouse at home.

Other home care options

• PACE: for people 55 and older who need nursing-home-level care and live in a PACE service area. PACE covers all Medicare and Medicaid services. Call 1-800-792-8820.
• JACC (Jersey Assistance for Community Caregiving): a state program for people 60 and older who need nursing-home-level care but do not qualify for Medicaid. Income can be up to $4,855 a month for one person, with assets up to $40,000. It pays for up to $1,090 a month in services. Call your Area Agency on Aging at 1-877-222-3737.

How to apply

1. Get the care assessment. If you live at home and are not on Medicaid, call your county Area Agency on Aging at 1-877-222-3737 to schedule a screening. If you already have Medicaid, call the member services number on your health plan card. If you are in a nursing home or hospital, ask the social worker. The Division of Aging Services decides if you meet the care need.
2. Apply for Medicaid with the County Social Service Agency in your county. The fastest way is online at dmahs-nj.my.site.com/familycare/quickstart, where you can upload papers. You can also get a paper application from the Area Agency on Aging or the county agency, or print it from nj.gov/humanservices/dmahs/clients/medicaid/abd/. On the application, answer "Yes" to the question about needing "nursing home like" services.
3. Send your papers. Use the state's ABD Checklist. Expect to give:
   • one bank statement for each quarter of the past five years, for every account you owned or shared, including closed accounts
   • proof of pensions and other regular income
   • records of large cash withdrawals, electronic payments, and any home, car or property sales in the past five years
   • a letter from your insurer showing cash value, if needed
   • a spouse's death certificate or a divorce decree, if it applies
4. Answer every request. If the county sends a Request for Information (RFI), answer each item and number your answers to match. Ask for more time if you cannot get a paper. Missing the deadline is a common reason for denial.

If your income is $1,330 a month or less, you may be able to sign a self-attestation form saying you made no transfers. The county still checks your assets.

After you apply

• If you are denied, you can reapply at any time. You only need to send the missing papers or new information.
• Fair hearing: you have 30 days from the date on your notice to ask for a fair hearing. Since July 1, 2026, if you want your coverage to stay the same while you wait, you must say so. Your notice explains how.
• Estate recovery: after you die, New Jersey can recover what Medicaid paid for care you got at 55 or older, including from your home. Recovery waits while a spouse, a child under 21, or a blind or disabled child is living. Questions: DMAHS Estates, 609-588-2900.

Things people often miss

• Assets are counted on the first day of the month. Spending down later in the month does not help that month.
• Payments to a family caregiver need a written contract and logs. Without them, they may be treated as gifts.
• Checks written to "cash" can lead to a penalty if you cannot explain them.
• A bill in the New Jersey Legislature would raise the personal needs allowance. As of October 2026 it had not passed.

Free help

• Area Agency on Aging / ADRC: 1-877-222-3737.
• Health Care Access Project, Legal Services of New Jersey: 1-888-576-5529.
• SHIP Medicare counseling: 1-800-792-8820.

For more, see paying for a nursing home, Medicare, and all benefits in New Jersey.

Phone numbers: Free help lines for New Jersey agencies

Check what you may qualify for