Once New Jersey Medicaid pays for a parent's long-term care, how much of their own income do they get to keep? The answer is the personal needs allowance, and in a nursing home it is small: just $50 a month.
That figure applies in a nursing home. In an assisted living residence the allowance is higher, and for someone receiving care at home there is no patient liability at all, so how much a person keeps depends almost entirely on where they live.
In This Guide
- What the personal needs allowance is
- The allowance by setting
- The nursing-home allowance and the pending increase
- What the allowance has to cover
What the New Jersey Medicaid Personal Needs Allowance Is
When New Jersey Medicaid pays for someone's long-term care in a facility, the resident isn't expected to contribute nothing, but they also don't get to keep all their income. Most of their monthly income (Social Security, a pension) goes toward the cost of care as "patient liability," and they keep a small slice for personal expenses. That slice is the personal needs allowance (PNA). It exists so a resident can buy the things Medicaid and the facility don't provide: clothing, a haircut, a phone, toiletries, a birthday gift for a grandchild.
The New Jersey Medicaid Personal Needs Allowance by Setting
The single most important thing to understand is that the allowance depends entirely on where the person lives.Centers for Medicare & Medicaid Services. (n.d.). Eligibility Policy. medicaid.gov. Retrieved Jun 24, 2026, from https://www.medicaid.gov/medicaid/eligibility-policy/index.html
| Where the person lives | Monthly personal needs allowance |
|---|---|
| Nursing facility | $50 |
| Assisted living residence, comprehensive personal care home, or adult family care home | about $140.15 |
| Own home or a family member's home (MLTSS) | All income (no patient liability) |
The logic: someone living at home has their own household expenses to cover, so MLTSS doesn't take any of their income. Someone in assisted living pays room and board out of income but keeps a modest allowance. Someone in a nursing facility, where room, board, and care are all covered, keeps the least.
The $50 Nursing-Home Allowance and the Pending Increase
The $50 nursing-home figure has gone unchanged for many years, so as prices have risen its purchasing power has fallen.Centers for Medicare & Medicaid Services. (n.d.). Eligibility Policy. medicaid.gov. Retrieved Jun 24, 2026, from https://www.medicaid.gov/medicaid/eligibility-policy/index.html In 2026, a bill to increase the nursing-home personal needs allowance (toward $140, matching the assisted-living figure) was before the New Jersey Legislature but had not been enacted as of mid-2026. Families budgeting for a parent's nursing-home stay should plan around the current allowance and watch for a change.
What the Allowance Has to Cover
The personal needs allowance is meant to cover personal items the facility doesn't provide: clothing and shoes, personal toiletries beyond the basics, a phone or its bill, haircuts and personal grooming, stamps, and small comforts. It is not meant to cover medical costs (Medicaid and Medicare handle those) or the resident's room and board (that's what the patient liability pays). Families often supplement the allowance with their own money or gifts to cover the gap, which is allowed. In limited situations a resident may keep more than the standard allowance through program-specific or court-ordered deductions; a county Medicaid worker can confirm what applies.Centers for Medicare & Medicaid Services. (n.d.). Eligibility Policy. medicaid.gov. Retrieved Jun 24, 2026, from https://www.medicaid.gov/medicaid/eligibility-policy/index.html
Frequently Asked Questions
How much money can a nursing-home resident keep in New Jersey?
A nursing-home resident keeps $50 a month; the rest of their monthly income goes toward the cost of care as patient liability. A 2026 bill to raise that figure was introduced in the New Jersey Legislature but had not been enacted as of mid-2026.Centers for Medicare & Medicaid Services. (n.d.). Eligibility Policy. medicaid.gov. Retrieved Jun 24, 2026, from https://www.medicaid.gov/medicaid/eligibility-policy/index.html
What can the personal needs allowance be used for?
Personal items the facility doesn't provide, clothing, toiletries, a phone, haircuts, stamps, and small comforts. It isn't meant for medical costs or room and board. Families may supplement it.
Can a Medicaid resident ever keep more than the allowance?
Yes, in limited situations. Certain program-specific or court-ordered deductions can let a resident keep more than the standard allowance, so ask your county Medicaid office or the facility business office about your specific case.
Learn More
Find personalized help understanding what income a New Jersey Medicaid resident keeps 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.