Medicaid for nursing home and home care in New Mexico

In short: New Mexico's Medicaid program, Turquoise Care, pays for nursing home care and for care at home through the Community Benefit if you need nursing-home-level care. In 2026 your income must be under $2,982 a month (or you can use an income trust), and your countable assets $2,000 or less. Apply with the New Mexico Health Care Authority (HCA) at yes.nm.gov or 1-800-283-4465.

Who qualifies

You must need the level of care a nursing home gives, and meet income and asset limits.

2026 limit	Amount
Monthly income (one person)	$2,982
Countable assets (one person)	$2,000
Home equity limit	$752,000
Assets a spouse at home can keep	$32,532 to $162,660
Personal needs allowance in a nursing home	$97 a month

The 30-day rule. The higher income limit applies once you have been in a nursing home, hospital or the Community Benefit for 30 days in a row. Until then, the lower SSI limit ($994 a month) is used. Once you reach 30 days, coverage can go back to the first of those 30 days.

What counts and what does not

Assets are counted at the first moment of the first day of each month.

Not counted:

Your home, while it is your main home, if your equity is under the limit. If your equity is over the limit, the whole home counts. You can ask for a hardship waiver.
One vehicle used for transportation, whatever it is worth.
Burial spaces, whatever they are worth.
Burial funds up to $1,500 for you and $1,500 for your spouse.
Life insurance, if the total face value of your policies is $1,500 or less.

Counted: bank accounts, other vehicles, cash value of larger life insurance, and most other property.

Married couples. In some cases, half of a couple's community income is counted for each spouse. Part of the couple's assets is set aside for the spouse at home. The spouse at home may also keep a monthly income allowance; ask HCA for the current amount, because it changes each July.

Gifts and the look-back

HCA looks back 60 months before you apply for gifts or sales for less than fair value. A transfer can cause a penalty. The penalty is found by dividing what you gave away by the average monthly nursing home cost, $9,209. Some transfers are allowed, such as giving your home to your spouse, or to a child who lived with you and gave you care. If HCA asks you to show what you got in return, you have 30 days to send proof.

If your income is over the limit

If your income is above $2,982 a month, you can still qualify by setting up an income diversion trust. Only your income (like Social Security or a pension) goes in. After you die, what is left in the trust goes to the state, up to what Medicaid paid. The trustee can take a fee of up to $89.43 a month. Talk to HCA or a lawyer before you set one up.

What Medicaid pays for

Nursing home care

Turquoise Care pays the nursing home. You keep $97 a month for personal needs. Most of the rest of your income goes to the nursing home.

The Community Benefit (care at home)

The Community Benefit lets Turquoise Care members who need nursing-home-level care get help at home or in assisted living. It does not cover 24-hour care. You start with the agency-based model for at least 120 days. Then you can ask to switch to self-directed care, where you hire and manage your own workers with help from a support broker.

Services can include personal care, home health aides, adult day health, assisted living, respite for family caregivers, emergency response devices, home changes, private-duty nursing, nutrition counseling, and help moving out of a nursing home.

PACE

PACE is for people 55 and older who need nursing-home-level care, can live safely at home, and live in the PACE service area. InnovAge New Mexico PACE is the program HCA lists.

How to apply

If you already have Turquoise Care, call your care coordinator and ask about the Community Benefit.
If you do not have Medicaid yet, apply with the HCA 100 form:
- online at yes.nm.gov
- by phone at 1-800-283-4465
- at a local Income Support Division office
- by mail to Central ASPEN Scanning Area (CASA), PO Box 830, Bernalillo, NM 87004, or by fax to 1-855-804-8960
Get help choosing services. Call the Aging and Disability Resource Center (ADRC) at 1-800-432-2080 to talk with an Options Counselor.
Send proof when asked, such as bank statements, income letters, and papers for any property or transfers in the past five years. For citizenship, HCA needs original documents; they are copied and given back.

HCA usually decides within 45 days, or up to 90 days if a disability decision is needed.

After you apply

Renewal: Medicaid is approved for 12 months at a time.
Report changes within 10 days, such as income, address or who lives with you.
Appeals: you have 90 days from the date of the notice to ask for a fair hearing. Ask within 13 days to keep your benefits during the appeal. Call 1-800-283-4465, or write to HCA's Office of Fair Hearing, P.O. Box 2348, Santa Fe, NM 87504-2348 (505-476-6213).
Estate recovery: if you got long-term care from Medicaid at 55 or older, HCA may seek repayment from your estate. It will not collect while a spouse, a child under 21, or a blind or disabled child survives. Call 1-800-283-4465.

Things people often miss

Apply early. From January 1, 2027, Medicaid for older adults can go back only up to 2 months before you apply, instead of 3.
If your assets are over the limit on the first day of a month, you are not eligible for that whole month.
Moving to the Community Benefit counts toward the 30-day rule.