New Mexico Long-Term Care

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New Mexico

The State of New Mexico authorized the federal/state partnership long-term care insurance program with the first insurance companies offering partnership policies in August of 2019. The Long-Term Care Insurance Partnership Program 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.

New Mexico’s Long-Term Care Partnership Program gives residents of the state with dollar-for-dollar asset protection. In the event they exhaust the benefits from their qualified Long-Term Care policy they are able to shelter part of their estate based on the total amount of benefits paid by the policy and still access the Medicaid long-term care benefit.

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 including New Mexico. 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.

State Tax Credit

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