New Jersey long-term care insurance: cost & coverage

Who regulates long-term care insurance in New Jersey

Long-term care insurance policies sold in New Jersey are regulated by the New Jersey Department of Banking and Insurance. If you have a complaint about an agent, carrier, or policy, you can file it with the regulator directly.

What long-term care costs in New Jersey

Median assisted living cost in New Jersey vs. the national median:

Source: SeniorLiving.org median assisted living costs, 2026. See costs for all 50 states for the full table.

What each type of care costs in New Jersey

Assisted living is only one of the settings people use. Median monthly costs across the main care types in New Jersey:

Source: SeniorLiving.org Cost of Care Research (2026)

New Jersey's LTC Partnership program

New Jersey has an active LTC Partnership program. New Jersey Long-Term Care Partnership Program was approved by CMS effective July 1, 2008.

A Partnership-qualified policy lets you keep an extra dollar of assets, protected from Medicaid spend-down, for every dollar your policy pays out in benefits — see the note above for this state's current status. Learn more about how Partnership programs work.

How New Jersey treats LTC premiums at tax time

New Jersey taxes income, and it gives long-term care insurance no special break: there is no New Jersey credit and no long-term-care-specific deduction. What New Jersey does have is a general medical expense deduction, taken straight off gross income on line 31 of Form NJ-1040, with no itemizing required. Only unreimbursed medical expenses above 2 percent of your gross income count. The Division of Taxation says that in general, medical expenses allowed for federal purposes are allowed for New Jersey purposes, and it lists insurance premiums covering medical care among the examples — but New Jersey's published guidance never names long-term care premiums, and New Jersey does not simply follow federal deduction rules. Ask a New Jersey preparer before counting on it.

Source: New Jersey Division of Taxation (2025)

This is general information, not tax advice. Confirm your own situation with a tax professional licensed in New Jersey.

Medicaid long-term care in New Jersey

New Jersey's Medicaid program is called NJ FamilyCare, and it no longer pays for long-term care the old fee-for-service way. Almost everyone who qualifies is enrolled in MLTSS — Managed Long Term Services and Supports — where a single NJ FamilyCare health plan coordinates everything, whether you are at home, in an assisted living residence, or in a nursing home. Two separate gates must be cleared: your County Welfare Agency reviews the money, while the Division of Aging Services confirms you need hands-on help with three or more activities of daily living. For 2026, a single applicant is held to $2,982 in gross monthly income and $2,000 in countable resources. Being over the income cap is not automatically fatal — New Jersey permits a Qualified Income Trust — but transfers are reviewed five years back.

Source: New Jersey Department of Human Services, Division of Medical Assistance and Health Services (2026)

How to compare quotes in New Jersey

• Confirm any agent or carrier you talk to is currently licensed to sell in New Jersey — the New Jersey Department of Banking and Insurance can confirm licensing status.
• Ask which products a carrier is actively writing in New Jersey today — availability changes state by state and year to year. See carriers we compare.
• If a Partnership-qualified policy matters to you, confirm with the carrier or agent whether a policy is currently certified as Partnership-qualified in New Jersey — see this state's Partnership status above.
• Compare traditional and hybrid options side by side — see traditional vs. hybrid coverage.
• Get quotes from more than one carrier; pricing for the same coverage can vary significantly.

Please note: Regulator names, complaint channels, and Partnership-program status can change. Confirm current details with the New Jersey Department of Banking and Insurance or a licensed agent before making any decision. LongTermCareInsurance411 is not a government agency and does not administer New Jersey's insurance regulations or Medicaid program.

Last updated: August 22, 2026