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New Jersey State Medicaid Income Requirements

Medicaid is a form of health insurance that is regulated by the federal government and provides supplemental benefits to eligible persons who are not covered by an employer's group health insurance plan. Medicaid became a government-sponsored program in 1965 as part of the Great Society program instituted by then President Lyndon B. Johnson.

  1. Individual Eligibility

    • In New Jersey, an individual can qualify for Medicaid coverage if their individual income does not exceed $903 per month, as of 2011. Income can come from a variety of sources and is not just limited to income received from a paycheck. Veteran's benefits, social security income and even trust fund payments all affect your ability to receive Medicaid benefits. Additional resources like life insurance, bank accounts, stocks and bonds and even your car can affect your eligibility. The total value of these resources cannot exceed $4,000.

    Aid for Institutionalization

    • Medicaid is also closely regulated in New Jersey for individuals who need to receive year-round institutional health care. Individuals in long-term care must also not exceed the maximum income guidelines. In New Jersey, the limit on your income is $2,022 per month. The same types of income are also counted toward the income of institutionalized individuals. If your income falls between $903 and $2,022 per month, you have a maximum resource limit of $2,000, rather than $4,000.

    Excluded Resources

    • Some items cannot be counted against you for income or resource purposes. For instance, your primary residence cannot be counted against you as a resource, but rental income can. Additional excluded resources include money set aside for burial purposes, burial spaces already purchased, life insurance that does not have a face value of $1,500 or more, engagement and wedding rings and an automobile that does not exceed $4,500 in value.

    Spousal Considerations

    • Those who are married and applying for Medicaid must also take into account their spouse's resources. The total amount that a couple must count toward income resource purposes is the greater of one-half of their total resources or $21,912. The amount cannot be greater than $109,560. When factoring potential resource income for institutionalized individuals, a spouse's resources are not factored in once institutionalization has been established as necessary.

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