New Mexico Long-Term Care

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New Mexico

The State of New Mexico has not yet authorized the federal/state partnership long-term care insurance program that was established by the federal Deficit Reduction Act of 2005 (DRA) This gave the states the ability to set up long-term care partnership insurance policies in order for consumers to protect additional assets if they have a qualified policy in place. The state has required insurance agents to take special training for the partnership program once it becomes law in New Mexico. It is expected that the state will have an active partnership program in place at some point.

Long-Term Care Medicaid spend down is $2000. A spouse’s minimum asset allowance is $31,290.

Most states have reciprocity with other states' long-term-care partnership programs. While New Mexico does not, at the moment, have an active program it has indicated it will offer reciprocity once it has the program in place. This means if you move from or to New Mexico your partnership asset protection follows you as well.

The State of New Mexico also offers state tax incentives but is limited to those taxpayers age 65 and older.


This allows taxpayers 65+, who are not dependents of another taxpayer, to claim a credit of $2,800 for medical care expenses. This includes LTC insurance premiums, paid for the taxpayer, spouse, or dependents if expenses equal $28,000 or more within a taxable year and if expenses are not reimbursed or otherwise compensated for.


Taxpayers 65 and older are entitled to an exemption of $3,000 for medical care expenses, which include LTC insurance premiums, if such expenses equal $28,000 or more within a taxable year and are unreimbursed or uncompensated.

Federal tax incentives are also available for all taxpayers of any age.

A variety of products are approved in New Mexico for Long-Term Care planning.

New Mexico Long-Term Care Costs

Home Health Aide Average Monthly Rate $3,813
Homemaker Services Average Monthly Rate $3,432
Adult Day Care Average Monthly Rate $2,217
Assisted Living Average Monthly Cost $4,250
Skilled Nursing Home Semi-Private Monthly $7,285
Skilled Nursing Home Private Average Monthly $7,619