New Mexico Long-Term Care Insurance Information

There are many resources available in New Mexico for those who need long-term care services. Plus, New Mexico participates in the federal/state long-term care partnership program, offering those with a qualified LTC Insurance policy dollar-for-dollar asset protection.

Quality care options are available statewide, and several insurance solutions are available for those who wish to plan. However, long-term health care costs are rising, especially in less populated areas of the state. These rapidly rising costs of extended care services throughout New Mexico are becoming burdensome for residents and their families who lack Long-Term Care Insurance.

These quality extended care options that available throughout New Mexico include:

• Adult day care centers
• Assisted living facilities
• Continuing care retirement communities (CCRCs)
• Home health care and in-home support services
• Memory care facilities for dementia and Alzheimer's
• Rehabilitation facilities
• Traditional nursing homes

Top insurance companies offer several solutions to help you safeguard income and assets, protect your lifestyle, and preserve a legacy. Policyholders also gain access to quality care options, giving loved ones the time to be family instead of full-time caregivers.

All tax-qualified Long-Term Care Insurance policies in New Mexico carry several consumer protections in addition to state and federal tax benefits.

Federal Partnership Program

New Mexico implemented its federal-state Long-Term Care Partnership Program in August 2019 under the federal Deficit Reduction Act (DRA) of 2005. The DRA gave states the ability to establish long-term care partnership programs so that consumers with a qualified policy could protect additional assets.

The New Mexico Long-Term Care Partnership Program provides residents with dollar-for-dollar asset protection when they purchase a qualified partnership-certified Long-Term Care Insurance policy. If you exhaust your policy benefits and later need Medicaid, an amount of assets equal to what your policy paid out is disregarded when the state calculates your spend-down requirement, helping you preserve more of your savings than standard Medicaid rules typically allow.

Reciprocity

Most states, including New Mexico, have reciprocity with other states' long-term care partnership programs. If you move from or to New Mexico, your partnership asset protection follows you.

Medicaid

New Mexico's Medicaid program is called Turquoise Care. The state renamed its managed care program from Centennial Care to Turquoise Care, effective July 1, 2024, though the underlying Medicaid 1115 demonstration waiver still carries the Centennial Care name behind the scenes.

Turquoise Care is administered by the New Mexico Health Care Authority (HCA) and delivered through contracted managed care organizations (MCOs), including Blue Cross Blue Shield of New Mexico, Molina Healthcare of New Mexico, Presbyterian Health Plan, and United Healthcare Community Plan of New Mexico.

Turquoise Care will pay for long-term care services if you meet eligibility requirements. The asset limit for long-term care Medicaid is $2,000 for a single applicant and $4,000 for a married couple when both spouses apply. A non-applicant spouse, known as the community spouse, may keep between $32,532 and $162,660 in countable assets, along with a monthly income allowance of up to $2,705. 

New Mexico is an income-cap state, so a single nursing home applicant's income must stay under $2,982 a month; income above that level requires a Qualified Income Trust rather than a standard spend-down. Long-term care services at home are delivered through the Turquoise Care Community Benefit program. The home equity limit is $752,000.

To apply, visit yes.nm.gov or call the Income Support Division at 1-800-283-4465. For more general information about the Medicaid program, visit www.medicaid.gov.

New Mexico Medicaid Estate Recovery Program

When you receive long-term care services through Turquoise Care, your estate may be subject to recovery under New Mexico's Medicaid Estate Recovery Program, administered by the Health Care Authority's Medical Assistance Division. Recovery applies to a Medicaid member age 55 or older who received nursing facility care, home and community-based services, or related hospital and prescription drug services.

Exemptions apply to certain Native American income, resources, and property, along with Medicare Savings Programs and Achieving a Better Life Experience (ABLE) accounts. Heirs can also request an undue hardship waiver if recovery would cause significant financial hardship, such as loss of a primary residence, and the state may compromise or settle claims when it's in the best interest of all parties.

If you have a qualified Partnership Long-Term Care Insurance policy, the benefits your policy paid are protected from both Medicaid eligibility limits and estate recovery.  

Products Approved in New Mexico

A number of planning options are available for Long-Term Care planning in New Mexico. Approved products include traditional long-term care policies, partnership-certified policies, limited-duration policies, and asset-based "hybrid" policies.

Long-Term Care Costs Rising in New Mexico

Long-term care costs continue to rise throughout New Mexico, and the burden is often greatest in rural and less-populated areas of the state, where fewer providers mean higher costs and fewer choices for families. Costs vary significantly depending on the type of care needed and where you or a loved one lives.

Use the LTC News Cost of Long-Term Care Services Calculator to see current and projected costs in your zip code.

Cost and Availability of Care Depend on Location

New Mexico's population centers include Albuquerque, Santa Fe, Las Cruces, Rio Rancho, Roswell, Farmington, Alamogordo, Clovis, Hobbs, and Carlsbad. Costs for nursing home care, assisted living, and home care vary among these communities, so check the Cost of Care Calculator for figures specific to your area.

Reverse Mortgages in New Mexico

Reverse mortgages are available in New Mexico and can be a useful way to access home equity to help fund retirement or long-term care needs.

A reverse mortgage, most commonly a federally insured Home Equity Conversion Mortgage (HECM), lets you convert a portion of your home's equity into tax-free cash. You are not required to make monthly mortgage payments; the loan is typically repaid when you sell the home, move out permanently, or pass away. 

A reverse mortgage may allow you to:

• Supplement retirement income
• Eliminate an existing mortgage payment
• Pay for in-home care
• Help fund a Long-Term Care Insurance policy
• Cover medical expenses or daily living costs

To qualify for a reverse mortgage in New Mexico:

• You must be age 62 or older
• The home must be your primary residence
• You must have sufficient equity in the home
• You must stay current on property taxes and homeowners insurance
• You must complete HUD-approved counseling before obtaining the loan

The loan balance increases over time, reducing home equity, so reverse mortgages should be carefully evaluated with a qualified, licensed mortgage broker as part of your overall financial and long-term care plan.

Learn more about reverse mortgages on LTC News. 

Life Settlements and Viatical Settlements in New Mexico

Life settlements and viatical settlements are available in New Mexico and can help pay for long-term care by converting an existing life insurance policy into cash. 

A life settlement allows you to sell your life insurance policy to a licensed third party for a lump sum greater than the policy's cash surrender value, but less than the death benefit. The buyer takes over future premium payments and receives the death benefit later.

A viatical settlement is designed for individuals who are terminally or chronically ill, typically with a limited life expectancy. Because of this, viatical settlements often provide higher payouts and faster access to funds.

If you qualify, proceeds can be used to:

• Pay for in-home care, assisted living, or nursing home services
• Cover hospice or palliative care expenses
• Pay for medications, medical equipment, or therapies
• Supplement retirement income or ease financial strain on family

New Mexico regulates life and viatical settlements to protect consumers. The state must license providers and brokers; transactions require clear disclosures and informed consent; and restrictions generally apply to selling newly issued policies, often within the first two years.

Important Considerations

• Selling your policy reduces or eliminates the death benefit for your beneficiaries
• Life settlement proceeds may be taxable, depending on your situation
• Viatical settlements are generally tax-free if IRS requirements are met

Because these transactions affect your estate, taxes, and Medicaid planning, work with a licensed professional and carefully evaluate your options. Learn more about life settlements and viatical settlements on LTC News.

State Resources for Aging and Long-Term Care in New Mexico

You do not have to navigate long-term care alone. New Mexico offers a strong network of state agencies and programs to help you or a loved one access care, understand benefits, and maintain independence. Many of these services are free.

• New Mexico Aging and Long-Term Services Department (ALTSD) - (800) 432-2080

ALTSD is the state's lead agency for aging and long-term services, and its Aging and Disability Resource Center (ADRC) is often your first point of contact. The ADRC can help you:

• • Explore long-term care options and plan ahead
  • Access in-home services, caregiver support, and adult day programs
  • Connect with senior centers, transportation, and nutrition programs
  • Get referrals to Medicaid and other benefit programs

• New Mexico Long-Term Care Ombudsman Program - 1-866-451-2901

Ombudsmen are trained advocates and problem solvers for residents of nursing homes and assisted living facilities across New Mexico. Through regular visits, they help residents by investigating complaints, protecting residents' rights, and resolving concerns regarding quality of care, transfers and discharges, and dignity. Services are free, confidential, and resident directed.

• New Mexico State Health Insurance Assistance Program (SHIP) - (800) 432-2080

New Mexico SHIP is administered through the ADRC and offers free, unbiased Medicare counseling. SHIP counselors can help you with:

• • Medicare plan comparisons and enrollment
  • Understanding what Medicare covers and does not cover for long-term care
  • Billing issues, appeals, and financial assistance programs 

• Legal Resources for the Elderly Program (LREP) - 1-800-876-6657

LREP helps New Mexicans age 55 and older with legal issues related to public benefits, housing, health care, consumer problems, and basic rights.

• Health Facility Provider Search - New Mexico Health Care Authority

This tool lets you search survey reports for licensed health facilities across the state and links to the federal Nursing Home Compare tool, which covers inspection results, staffing levels, and enforcement actions. It's a valuable resource when evaluating a care provider. 

• LTC News Caregiver Directory - A comprehensive listing of caregivers and long-term care facilities in New Mexico and nationwide. 

• New Mexico Adult Protective Services - 1-866-654-3219

Adult Protective Services investigates reports of abuse, neglect, or exploitation of vulnerable adults and can arrange emergency services when needed.

 _{*The federal government sets a new minimum and maximum amounts each year, but states can set their own minimum requirements at any level between the federal limits. This information is based on the best available sources.}