New Jersey Skyline Medicaid

Medicaid Update: New Jersey’s 2024 Updated Income and Resource Standards Are Here. Find Out What’s New and How It Affects You?

New Jersey’s 2024 Income and Resource Standards for Medicaid Only and 2024 Rates for Home and Community Based Services were announced on December 26, 2023. Effective January 1, 2024 the new amounts will take effect. While the changes do not amount to much, the changes are still significant and relevant to Medicaid recipients, applicants, and their spouses. It is important to know these figures if you are in need of Medicaid or you are researching Medicaid Planning.

The changes are based on the federal cost of living adjustment to the SSI eligibility standard, which is a 3.2% increase. A brief summary of the changes is highlighted below.

Income and Asset Caps for Medicaid Eligibility

First, the maximum gross income cap (before any deductions) for an individual seeking institutional or nursing home care has increased from $2,742 per month to $2,829 per month. However, the personal needs allowance, the amount a Medicaid recipient in nursing home care can keep, has remained at $50 per month and the asset limit for an individual applicant stays at $2,000 and at $3,000 for married couples seeking coverage.

Second, the spousal impoverishment standards have also increased for 2024. Spousal impoverishment rules ensure that the spouse of a Medicaid recipient who is not in nursing home care has enough income and resources to not be impoverished. For the limits on income of the community spouse, The Minimum Monthly Maintenance Needs Allowance remains unchanged at $2,465 per month, while the Maximum Monthly Maintenance Needs Allowance increases from $3,715.50 per month to $3,853.50 per month.

The Minimum Monthly Maintenance Needs Allowance can be increased up to the Maximum amount of $3,853.50 using the Shelter Standard, or Excess Shelter Allowance, of $739.50 per month (unchanged from 2023) and the Standard Utility Allowance of $850 per month.  (up from $730).

For the limits on resources, or countable assets for a spouse of an individual receiving Medicaid in a nursing home, the Minimum Community Spouse Resource Allowance increases from $29,724 to $30,828. The minimum amount can change however since the community spouse can claim half of the couple’s countable assets, up to a Maximum Community Souse Resource Allowance of $154,140, which increased from $148,620 in 2023.

Primary Residence Exclusion

Third, the amount of equity in a primary residence which may be excluded from available resources for Medicaid eligibility has increased from $1,033,000 to $1,071,000. Finally, an important note is that the Divestment Penalty Divisor, the number used to determine the period of ineligibility for transferring or divesting countable assets when applying for Medicaid, has remained unchanged at $384.57 per day. So for every $384.57 transferred during the 5 years prior to a Medicaid application, the applicant will be ineligible for coverage for one day.

Summary Table

Below is a summary of the 2024 amounts:

Max Gross Income Cap – $2,829.00

Personal Needs Allowance – $50.00

Individual Resource Allowance – $2,000.00

Married Couple Resource Allowance (Both in Nursing Home) – $3,000.00

Minimum Monthly Maintenance Needs Allowance – $2,465.00

Maximum Monthly Maintenance Needs Allowance – $3,853.50

Shelter Standard (Excess Shelter Allowance) – $739.50

Standard Utility Allowance – $850.00

Minimum Community Spouse Resource Allowance – $30,828.00 (or half of total marriage assets up to $154,140)

Maximum Community Spouse Resource Allowance – $154,140

Home Equity Limit – $1,071,000

Divestment Penalty Divisor – $384.57 per day

If you have any questions or need clarification on anything in this article, please send us a note below or call our office. We are here to help you and your family with planning for Medicaid eligibility and to establish an estate plan for that fits your and your family’s needs.

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