What Happens to a Medicaid Applicant’s Income after New Jersey Approves the Application?

          A Medicaid recipient’s income must be given to the nursing home (or assisted living facility in the case of New Jersey’s Medicaid Assisted Living waiver program) and Medicaid will then pay the rest of the cost up to the Medicaid reimbursement rate (this rate is negotiated by each home directly with Medicaid).  The recipient can only keep $35 per month for a personal needs allowance and a enough to pay the premium for his/her Medicare supplemental insurance.  The personal needs allowance is typically kept in an account by the nursing home to cover haircuts, nails etc.