New Mexico Long-Term Care

Important State Information

Federal Partnership Program

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.

Once approved, the New Mexico Long-Term Care Partnership Program will provide residents of the state with dollar-for-dollar asset protection when they purchase a qualified partnership qualified Long-Term Care Insurance policy.


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.


Long-Term Care Medicaid spend down is $2,000. A spouse’s minimum asset allowance is $31,290. Your spouse’s minimum monthly income allowance is $2,057.50. *

For more information about the Medicaid program visit

Rate Stability Rules

In addition, New Mexico consumers enjoy additional peace-of-mind as the state has adopted Long-Term Care Insurance Rate Stability Rules.  These rules, developed the National Association of Insurance Commissioners, makes it much harder for an insurance company to get an approved rate increase.

Products Approved in New Mexico

A number of planning options are available. These products are approved in New Mexico for Long-Term Care planning: traditional long-term care policies, limited-duration policies, and asset-based “hybrid” policies.

Tax Incentives

The State of New Mexico also offers state tax incentives but is limited to those taxpayers age 65 and older. Federal tax incentives are also available for all taxpayers of any age.

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.

*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.

New Mexico state emblem
State Breakdown
State Partnership Program
State Tax Incentives
Federal Tax Incentives
Rate Stability Rules
Medicaid Spend Down $2,000
Minimum Asset Allowance $31,290
Minimum Monthly Income Allowance $2,057.50
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Calculate the Cost of Care in New Mexico

View the costs of Long-Term Care in your area. Use the slider below to view future costs of care services with inflation.

New Mexico Median
Long-Term Care 2019 2034(+16 Years) 2019 2034(+16 Years)
Homemaker Services $42,420 $66,088(+$24,904) $51,799 $80,701(+$30,411)
Home Health Aide $47,133 $73,431(+$27,671) $52,977 $82,536(+$31,102)
Adult Day Care $27,396 $42,682(+$16,084) $27,396 $42,682(+$16,084)
Assisted Living Facility $52,530 $81,840(+$30,840) $63,036 $98,208(+$37,008)
Semi-Private Room $90,041 $140,280(+$52,862) $94,051 $146,529(+$55,217)
Private Room $94,176 $146,723(+$55,290) $110,620 $172,342(+$64,944)
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Long-Term Care Throughout New Mexico


Albuquerque is the large metro area in the state. The average cost of a skilled nursing facility runs $12,927 a month. The cost of an Assisted Living Facilityaverages $5,916 a month. Adult Day Care Centers average $1,950 a month. Care at home, based on a 44-hour week, averages $4,767 a month.

More Locations

Other population centers in New Mexico include Alamogordo, Clovis, Farmington, Hobbs, Las Cruces, Rio Rancho, Roswell, Santa Fe, and South Valley.