To qualify for Medicaid in New Jersey as a single individual, you can generally have no more than $2,000 in countable assets, which includes money in a bank account.
Understanding Medicaid Asset Limits in New Jersey
Medicaid, known as NJ FamilyCare in New Jersey, provides health coverage to eligible low-income individuals and families. For long-term care services, there are specific financial eligibility criteria, including limits on both income and assets. "Money in the bank" falls under the category of countable assets.
For a single applicant in 2025, the asset limit for New Jersey Medicaid's long-term care programs is set at $2,000. This limit applies to both institutional (nursing home) care and Home and Community Based Services (HCBS), which help individuals receive care in their homes or communities.
The table below outlines the 2025 financial eligibility limits for single individuals seeking long-term care Medicaid in New Jersey:
2025 New Jersey Medicaid Long-Term Care Eligibility for Single Individuals
| Type of Medicaid | Income Limit | Asset Limit |
|---|---|---|
| Institutional / Nursing Home Medicaid | $2,901 / month* | $2,000 |
| Home and Community Based Services (HCBS) | $2,901 / month† | $2,000 |
*This income limit applies to individuals who are seeking long-term care.
†For HCBS, this income limit applies if New Jersey uses the Medically Needy (Spend-Down) Program or other specific waivers.
What Counts as an Asset?
When applying for Medicaid, the state evaluates your "countable assets." These are resources that can be converted to cash and used to pay for your care. Common examples of countable assets include:
- Cash
- Money in bank accounts (checking, savings, CDs)
- Stocks and bonds
- Mutual funds
- IRAs and 401(k)s (often with specific rules for retirement accounts)
- Non-primary real estate (e.g., vacation homes, rental properties)
- Certain trusts
What is Not Counted (Exempt Assets)?
Not all assets are counted towards the Medicaid limit. Several assets are typically exempt, meaning they do not affect your eligibility. These commonly include:
- Your primary residence: If you intend to return to it, or a spouse, minor child, or disabled child lives there. There might be an equity limit on the home's value.
- One vehicle: Usually, one car of any value is exempt.
- Household furnishings and personal belongings: Furniture, appliances, clothing, jewelry, etc., are generally exempt.
- Burial funds or plots: Up to a certain amount.
- Life insurance policies: Usually exempt if their face value is below a certain threshold (e.g., $1,500).
Important Considerations
- Annual Changes: Medicaid eligibility criteria, including income and asset limits, are subject to change annually. The limits provided here are for 2025.
- Look-Back Period: New Jersey Medicaid has a 60-month (five-year) "look-back" period. During this time, the state reviews all financial transactions to see if any assets were transferred for less than fair market value. Transfers made during this period can result in a penalty period, delaying Medicaid eligibility.
- Medically Needy Pathway: For some programs, if your income is above the limit but your medical expenses are high, New Jersey may have a "medically needy" or "spend-down" program. This allows you to "spend down" your income on medical bills until you reach a certain threshold, making you eligible for Medicaid.
Understanding these limits and rules is crucial for effective Medicaid planning.
