Medicaid long-term care eligibility in New Mexico (2026)

Last verified: October 2026

What is the income limit for New Mexico Medicaid long-term care in 2026?

Effective January 1, 2026, the maximum countable monthly income for institutional care Medicaid and the home and community-based waiver categories in New Mexico is $2,982, under 8.200.520 NMAC; that is the standard used for nursing home Medicaid and the long-term care categories behind the Community Benefit.

Countable income is not always the same as gross income, and the medical and functional test (nursing facility level of care) applies too. Medicaid caseworkers decide both, so treat this figure as the threshold to ask about, not a final answer.

Sources: 8.200.520 NMAC, Income Standards.

What is the asset limit for New Mexico Medicaid long-term care?

An applicant is eligible on resources if countable resources do not exceed $2,000, under 8.281.500 NMAC; some resources are excluded, and a burial fund of up to $1,500 each for the applicant and spouse is excluded.

Resources are counted as of the first moment of the first day of each month, so spending down in the middle of a month does not help until the following month. The portion of an entrance fee to a continuing care or assisted living community that could be refunded counts as a resource.

Sources: 8.281.500 NMAC.

What happens to the spouse at home when one spouse needs Medicaid long-term care?

New Mexico protects part of a married couple's resources and income for the spouse who stays home: a community spouse resource allowance between $31,584 and $157,920 (figures for 2025 posted in 8.200.510 NMAC), and a minimum monthly maintenance needs allowance can be set aside from the institutionalized spouse's income for the community spouse.

Spousal rules are where families most often benefit from an elder law attorney, because the protected amount depends on the couple's resources on the date one spouse entered care.

Sources: 8.200.510 NMAC.

How much income does a New Mexico Medicaid nursing home resident keep?

A resident keeps a monthly personal needs allowance, $94 a month personal needs allowance for a nursing facility resident (amount posted in 8.200.510 NMAC, effective July 1, 2024), and most of the rest of their income goes toward the cost of care as a medical care credit, after allowed deductions such as a spousal allowance and certain health insurance premiums.

For a Community Benefit member in assisted living the arrangement is different: the resident pays the facility's room and board from income, and the plan pays the services.

How do you apply for New Mexico Medicaid long-term care?

Apply online at yes.nm.gov or call 1-800-283-4465; for help understanding options first, or to join the Community Benefit Central Registry, call the Aging and Disability Resource Center at 1-800-432-2080.

Gather five years of financial statements before you apply. Medicaid looks back at transfers of assets for less than fair market value, and gifts to family during that period can delay coverage.

New Mexico Medicaid long-term care: the 2026 numbers