Long-Term Care Funding in New Mexico

New Mexico is an income-cap Medicaid state, which means an applicant whose monthly income exceeds the state's threshold generally can't simply spend down — a specific legal tool is required instead. New Mexico's own name for that tool is the Income Diversion Trust, sometimes called a Maxwell v. Heim trust in state practice, though it functions much like what other states call a Qualified Income Trust or Miller trust (HCA 8.281.510 NMAC trust policy).

The state also runs its long-term services and supports through a managed-care program called Turquoise Care, which the Health Care Authority (HCA) says began July 1, 2024, with a federal demonstration approval running through December 31, 2029. For families pursuing care at home rather than in a facility, New Mexico's Community Benefit Program adds a further wrinkle: a Central Registry that allocates slots to people who don't already have full Medicaid coverage, which makes timing an important part of any New Mexico plan (New Mexico HCA Turquoise Care overview; CMS New Mexico Turquoise Care demonstration page).