Nursing Homes in New Jersey: Costs, Quality & Medicaid (2026)

A nursing home is the costliest kind of senior care CareScout tracks in New Jersey, with a semi-private room at a median of about $12,775 a month in its latest survey.1,2 It's a hard decision, and the rules about quality and who pays aren't obvious.

This guide gives the latest nursing-home costs from CareScout's survey released in March 2026, shows how to judge a nursing home using the two ratings that matter, explains why Medicare won't cover a long-term stay, and walks through how New Jersey Medicaid pays for nursing-facility care once savings run low.2

In This Guide

• What nursing-home care costs
• How to judge quality
• Does Medicare pay?
• How NJ Medicaid pays for nursing-home care
• Alternatives to a nursing home
• How to choose a nursing home

What Nursing-Home Care in New Jersey Costs

New Jersey's care costs run above the national median in every category CareScout tracks, and nursing homes are the priciest of them.2 By the CareScout 2025 Cost of Care Survey, a semi-private room runs a median of about $12,775 a month (about $153,300 a year) and a private room about $14,448 a month (about $173,375 a year). That puts New Jersey 13th-highest among the states for a semi-private room and 12th-highest for a private one.1

At those prices, even substantial savings can run down quickly, which is why Medicaid matters so much for a long stay.

How to Judge Quality: Inspections and the Five-Star Rating

Use two oversight systems together.1

• New Jersey Department of Health (DOH) licenses and inspects nursing homes. Ask to see a home's recent inspection results.
• CMS Care Compare Five-Star rating scores each Medicare- or Medicaid-certified nursing home from one to five stars overall, with separate stars for health inspections, staffing, and quality measures.

Look at the staffing and health-inspection stars specifically, not just the headline number, and treat a high overall rating with weak staffing as a question to raise on your tour.

Does Medicare Pay for a Nursing Home?

No, not for long-term care. Medicare covers only short-term skilled care, such as a limited skilled-nursing stay after a qualifying hospital stay. Ongoing custodial nursing-home care is paid privately or, for residents who qualify, through Medicaid.1

How NJ Medicaid Pays for Nursing-Home Care

Once private savings run low, New Jersey Medicaid can pay for a long nursing-home stay, and it works through the state's MLTSS program.3 To qualify, an applicant must be 65 or older (or determined blind or disabled by Social Security or the state), meet a clinical nursing-facility level of care, and meet the 2026 financial limits: $2,982/month income and $2,000 in countable resources for a single applicant, with a Qualified Income Trust for higher income and spousal-impoverishment protections that let a married applicant's spouse keep the greater of $32,532 or half the couple's combined countable resources, capped at $162,660 unless New Jersey's own regulation authorizes more.5,3 New Jersey applies a 60-month look-back on transfers.5

Once approved, the resident keeps a $50 monthly personal needs allowance and pays the rest of their income toward the cost of care as a cost share, which the nursing home collects; the MLTSS health plan pays the facility the remainder.4 That's a key difference from assisted living, where federal Medicaid rules don't pay for room and board, so the resident still covers housing and meals.6 For the eligibility details, see our guides to New Jersey Medicaid eligibility and income limits and how to pay for senior care in New Jersey.

Alternatives to a Nursing Home

A nursing home is the highest level of care. Someone who needs help with daily activities but not round-the-clock skilled nursing may do well in assisted living or with in-home care, both of which usually cost less. By the CareScout 2025 Cost of Care Survey, New Jersey assisted living runs a median of roughly $101,550 to $104,520 a year, and a full-time in-home caregiver (44 hours a week) about $86,944 a year, against about $153,300 for a semi-private nursing-home room.2 MLTSS can also coordinate care at home or in an assisted living facility for people who qualify, so it's worth asking whether a lower level of care would meet your parent's needs.3

How to Choose a Nursing Home

After you've used the ratings to build a short list, the visit tells you the rest:

• Visit at different times, including a mealtime and an evening, and watch staffing levels and how residents are treated.
• Ask about the staff-to-resident ratio, especially overnight, and about staff turnover.
• Confirm the home accepts Medicaid (MLTSS) and whether your parent could stay if they later spend down to Medicaid.
• Read the admission contract carefully, and never sign as a personally responsible party for the resident's bills.
• Review the home's recent DOH inspection report and its CMS star breakdown.

Learn More

Find personalized help comparing nursing homes and understanding NJ Medicaid coverage at brevy.com.

The information on Brevy.com is for educational purposes only and is not a substitute for professional legal, financial, or medical advice. Rules vary by state and program and change frequently. Always verify with the relevant agency or a qualified professional. Brevy is not a law firm, financial advisor, or healthcare provider.