06/20/2026
NEW JERSEY MEDICAID: WHAT IS IT AND HOW DOES IT WORK? - There are a vast number of Medicaid programs in New Jersey. This article will concentrate on a few of the most used programs. Medicaid provides medical insurance and services.
• SSI-linked Medicaid. If the individual is receiving Supplemental Security Income (SSI), he or she automatically receives Medicaid. The income and asset rules are the same as SSI.
• Managed Long-Term Services and Supports (MLTSS). This is a large Medicaid waiver program. In New Jersey and other income cap states, there is an income limit of $2,982, but a work around for this is a Qualified Income Trust (QIT). The asset limit for MLTSS in New Jersey is $2,000. There is spousal deeming with a minimum Community Spouse Resource Allowance that can be retained by the Community Spouse of $31,584, and a maximum amount of $162,660 for 2026. There is a transfer of asset penalty with a lookback period of five years. The penalty is calculated by dividing the state divisor of $420.67 per day into the amount transferred. To be eligible, the applicant must be disabled.
• NJ FamilyCare. There is generally an asset limit of $4,000 for an individual and $6,000 for a married couple. There is no income limit. Eligibility for NJ FamilyCare is based on the federal poverty level and income and household size. In 2026, the maximum income level for an individual is $1,836 per month, while for a family of four the income level is $9,763 per month. With respect to deeming, this is based on household income. There is no transfer of asset penalty. There is no lookback for asset transfers. A Special Needs Trust is generally not required. Disability is not required for eligibility.
Many programs have an income cap. All of the programs have an asset limit. All programs have a transfer of asset penalty that ranges from three to five years depending on the program. Disability Determination must be made for some but not all programs.
