Qualifying for Medicaid in New Jersey can feel like a daunting task. As experienced New Jersey Medicaid attorneys, we are dedicated to helping clients understand the ins and outs of this essential program.
One key factor in determining Medicaid eligibility in New Jersey is what are known as “assets and resources.” Because certain Medicaid programs impose a value limit for the amount of assets you have, it is crucial that you are aware of this topic.
This article will clarify what is considered an asset or resource for New Jersey Medicaid and how an experienced attorney can help you assess your assets and resources when applying for Medicaid.
What is Medicaid?
Medicaid is a state and federally funded health insurance program designed to provide healthcare coverage for low-income individuals, families, and seniors. Each state has its own set of rules and regulations, so it’s essential to understand the specifics of New Jersey’s Medicaid programs when determining eligibility.
In New Jersey, there are a number of Medicaid programs. This includes Affordable Care Act Medicaid, NJ WorkAbility, NJ Care for the Aged, Blind and Disabled, and Managed Long Term Services and Supports (MLTSS). NJ WorkAbility is unique in that it does not impose an asset limit. However, the other Medicaid programs are subject to their own distinct asset limits.
Defining Assets and Resources
When discussing Medicaid, the terms “assets” and “resources” are frequently used interchangeably. Technically, these terms refer to different things. Assets are items of value that can be converted into cash, whereas resources are financial products that can be directly accessed. Nonetheless, assets and resources both factor into the Medicaid eligibility equation, so for the purpose of this article, we will refer to them both as “assets.”
Countable & Exempt Assets
That said, not all assets are counted when assessing Medicaid eligibility. Thus, it is crucial to know which assets are considered “countable” and which are not.
Countable assets include, but are not limited to, checking and savings accounts, certificates of deposit (CDs), stocks and bonds, mutual funds, certain retirement accounts, cash value of certain life insurance policies, real property (besides your primary residence), certain personal property, and certain trusts.
On the other hand, exempt assets may include your primary residence (up to a certain value), one vehicle (up to a certain value), your wedding ring, prepaid funeral arrangements, certain personal belongings, certain life insurance policies, certain income-producing properties, and certain trusts.
An Attorney Can Provide Invaluable Advice
If you are applying for New Jersey MLTSS, we highly suggest working with an attorney. MLTSS applications are notoriously complicated, so having an expert’s guidance can help assure that you get the affordable long-term care that you need.
First, an attorney can review your financial situation to determine your eligibility. Your attorney will identify potential planning strategies to protect assets and minimize your spend-down. Additionally, your attorney can provide guidance on the use of trusts and other legal tools to preserve assets while maintaining Medicaid eligibility. Importantly, your attorney can make sure any transfers comply with Medicaid’s look-back period and are not subject to any unnecessary penalties.
More generally, an attorney can walk you through the MLTSS application process, ensuring all documentation is accurate and complete. And, in the event of a Medicaid denial, your attorney can represent you in an appeal.
Understanding the asset and resource requirements for Medicaid eligibility in New Jersey is crucial for those seeking assistance through this vital healthcare program. Consulting with a knowledgeable New Jersey elder law attorney can help ensure that your assets are accurately assessed and that you can access the benefits you need. The Chamberlain Law Firm is here to help you throughout the Medicaid MLTSS process. Give us a call today at (201) 273-9763 to get started. For more Medicaid advice, be sure to check out our Insight Articles.
This article is for informational purposes only. It is not intended as legal advice. In the event you would like to speak with a lawyer about the specifics of your case, contact The Chamberlain Law Firm at (201) 273-9763 to schedule a consultation.
FAQs
In NJ, IRAs / 401Ks are counted. There are also many assets that are considered exempt (non-countable). Exemptions include personal belongings, household furnishings, an automobile, irrevocable burial trusts, and generally one's primary home. All assets of a married couple are considered jointly owned.
How much money can you have in the bank to qualify for Medicaid in NJ? ›
The current Medicaid resource maximum for an individual is $4,000. Countable resources include, but are not limited to, bank accounts, property other than principal residence, stocks, bonds, certificates of deposit, annuities, and cash surrender value of life insurance which exceeds $1,500 in face value.
How do I protect my assets from Medicaid in NJ? ›
To safeguard your assets from the spend-down requirement before qualifying for Medicaid, you should consider establishing an irrevocable trust. When you create an irrevocable trust, you can designate one or more beneficiaries, such as your children, grandchildren, loved ones, or a charitable organization.
Does NJ FamilyCare check bank accounts? ›
Federal regulations found under Section 1940 of the Social Security Act [42 USC 1396w] and New Jersey State regulations under 10:71-4.2(b)3 require the verification of liquid assets held in financial institutions for purposes of determining Medicaid eligibility for applicants or beneficiaries under the NJ FamilyCare - ...
Can you own a house and get Medicaid in NJ? ›
A nursing home resident can own a home and receive Medicaid benefits without having to sell the home. Upon death, however, if the home is part of the probate estate, the state may seek to force the sale of the home in order to reimburse the state for the payments that were made.
What is the look back for Medicaid in NJ? ›
Is the Medicaid Application process time-consuming in New Jersey? You bet it is! Medicaid demands proof of every financial transaction going back five full calendar years prior to the application.
Does NJ Medicaid check your bank account? ›
Medicaid has an asset verification system that uses the client or spouse's Social Security number to pull information on any bank account they have had in the past five years, including the balance. Medicaid will request that the client verify the balance on each account.
Is it hard to get Medicaid in NJ? ›
Citizens or qualified immigrants. For an adult to qualify for NJ FamilyCare, the total family income must be at or below 138% of the Federal Poverty Level. For a single person, that is $1,732 a month; for a family of 4, that is $3,588 a month (2024 guidelines).
What is the monthly income limit for Medicaid in NJ? ›
ACA Medicaid Expansion is the program for adults ages 19 to 64. The central eligibility criterion is having income at or below 138% of the federal poverty level (FPL). For 2024, for a person applying as a single individual, 138% FPL, is $1,732 per month or $20,783 per year.
Does NJ FamilyCare look at assets? ›
NJ FamilyCare Aged, Blind Disabled (ABD) Program
In addition to income thresholds, the ABD program imposes a $4,000 asset limit on older adults and people with disabilities, while single adults under 65 are not subject to asset restrictions.
Estate Recovery
New Jersey has a right to recover for medical assistance paid under certain circ*mstances. This right includes the right to recover against a home. The right to estate recovery applies to a home owned as tenants by the entirety, joint tenants or tenants in common.
How long do you have to live in NJ to qualify for Medicaid? ›
Children can qualify regardless of their immigration status. Adults age 19-64 with income up to 138% FPL ($1,732/month for a single person and $2,351/month for a couple). In general, immigrant adults must have Legal Permanent Resident status in the US for at least five years in order to qualify for NJ FamilyCare.
Do you have to pay back Medicaid in NJ? ›
Under both federal and New Jersey law, Medicaid is required to recover funds from the estate of an individual receiving — or who has received — Medicaid benefits on or after age 55.
Does the government monitor personal bank accounts? ›
The federal government has no business monitoring small cash deposits and how Americans pay their bills and has no right to snoop around in private checking accounts without a warrant.
Does the government look at your bank account? ›
The IRS probably already knows about many of your financial accounts, and the IRS can get information on how much is there. But, in reality, the IRS rarely digs deeper into your bank and financial accounts unless you're being audited or the IRS is collecting back taxes from you.
Can Medicaid take a jointly owned home in NJ? ›
New Jersey has a right to recover for medical assistance paid under certain circ*mstances. This right includes the right to recover against a home. The right to estate recovery applies to a home owned as tenants by the entirety, joint tenants or tenants in common.
What is the asset limit for Medicare in NJ? ›
Qualified Medicare Beneficiary (QMB)
Must not exceed income or asset eligibility limits. For 2024, income and asset limits are as follows: Income: $15,060 for singles and $20,448 for married couples. Assets: $9,430 for singles and $14,130 for married couples.
