How much does a nursing home cost in New Jersey?

1 min read by Unbiased team Last updated June 28, 2024

Learn about average nursing home costs in New Jersey, care facility differences and expenses, payment options, and the importance of early planning.

Summary 

  • Nearly 75% of New Jersey nursing homes are for-profit. 

  • New Jersey is one of the top 10 most expensive states for nursing care in the US. However, the quality of care is extremely high. 

  • Various care options are available, and the costs for these differ.  

  • Unbiased can match you with a financial advisor who can help you manage your finances so you and your family receive the healthcare they need.  

Is nursing home care good in New Jersey? 

Nursing home care in New Jersey is among the most expensive in the country, with average costs exceeding the national average. However, the Garden State strives to keep its quality as high as possible.  

In New Jersey, nursing homes offer various care options. Knowing these options helps families choose the best care for their loved ones and budget accordingly. The different options include: 

  • Basic care: Includes help with daily activities. 

  • Skilled nursing: Provides medical care from licensed nurses.  

  • Specialized care: Focuses on conditions like dementia, offering tailored support and therapies. 

What are the average costs of nursing home care in New Jersey? 

The average cost of a nursing home in New Jersey is about $11,169 monthly for a semi-private room and $12,699 for a private room.  

In comparison, the national averages are $8,669 and $9,733 respectively.  

This makes New Jersey one of the most expensive states for nursing home care in the United States. 

Here's a breakdown of the average cost of nursing home care in New Jersey by region: 

RegionSemi-private roomPrivate room
Northern New Jersey $8,700 $11,400
Central New Jersey $13,500 $14,900
Southern New Jersey $10,600 $11,500

How do costs compare for different types of care in New Jersey? 

The average monthly nursing home cost in New Jersey for a semi-private room is $11,169, while a private room costs around $12,699.  

Specialist care units, such as those for dementia, often cost more due to the extra services and staff required. 

A semi-private room is more budget-friendly and suitable for those needing basic care.  

Private rooms offer more privacy and are ideal for those who value personal space.  

Specialized care units provide tailored services for specific conditions like dementia, ensuring the best support but at a higher cost. 

How do you pay for nursing home care in New Jersey? 

A few options exist for paying for New Jersey nursing home costs, including: 

  • Private savings: Using personal funds or assets. 

  • Long-term care insurance: Covers costs if purchased prior to needing care. 

  • Medicaid: For low-income individuals, covering most nursing home expenses. 

  • Medicare: May cover short-term care after hospitalization.  

You must meet income and asset limits to qualify for Medicaid in New Jersey. However, it would help if you planned asset transfers before applying to make allowance for the penalty period. 

What are the tax implications of nursing home costs in New Jersey? 

Some nursing home costs in New Jersey offer tax benefits.  

For instance, you may deduct medical expenses, including nursing home care, if they exceed 7.5% of your adjusted gross income (AGI) on federal taxes. This includes costs for medical care, meals, and lodging. 

Below are some steps you must follow to claim these deductions: 

  • Itemize your expenses on Schedule A on your tax return.  

  • Keep detailed records and receipts. 

  • Consult with a tax professional to ensure you comply with relevant tax laws and maximize your deductions

What is the difference between nursing homes and assisted living facilities in New Jersey? 

Nursing homes in New Jersey offer 24-hour medical care and support, costing on average $12,000 per month. They are ideal for those requiring constant medical attention.  

However, those who don't need full-time care can opt for assisted living facilities. 

Assisted living facilities provide help with day-to-day activities like bathing and meals. They suit individuals needing less intensive care and more independence and are more cost-effective, too. The average monthly expense for an assisted living facility in New Jersey is $7,400.  

Key differences between these two kinds of facilities include the level of medical care and costs. Nursing homes are more expensive due to higher care levels, while assisted living is more affordable for those needing less supervision. 

How do you choose the right nursing home or assisted living facility in New Jersey? 

Choosing the best nursing home or assisted living facility in New Jersey involves considering cost, quality of care, services, and location. It's advisable to visit multiple facilities and compare notes to find the best nursing care home for your needs. 

When visiting a nursing home or assisted living facility, observe the cleanliness of the premises, staff interaction, and resident well-being.  

Ask the staff about their experience, staff-to-resident ratios, and services offered. Where possible or allowed, speak to residents about their experiences. 

Here are some other questions to ask that can provide insight: 

  • What activities and therapies are available? 

  • How are medical needs handled? 

  • What is the staff turnover rate?  

  • What "hidden costs" might I expect? 

When should I start planning for long-term care? 

To ensure you can cover the cost of nursing home care in New Jersey, start planning early, ideally in your 50s or 60s. Early planning allows you better financial and care options.  

Here are some tips to help you get started:

  • Save regularly for long-term care, invest wisely, and consider long-term care insurance. 

  • Create or update wills, trusts, and power of attorney documents. 

  • Discuss preferences and involve family in decisions to ensure everyone is on the same page. 

Get expert financial advice  

The average cost of a nursing home in New Jersey is above the national average. Before deciding on a facility, determine the level of care required and what you can afford. It's essential to plan early for long-term care to improve your options or take advantage of the payment options available. 

Let Unbiased match you with a financial expert to ensure you get the best financial advice on long-term care planning and associated tax implications. 

Writers

Unbiased team

Our team of writers, who have decades of experience writing about personal finance, including investing and retirement, are here to help you find out what you must know about life’s biggest financial decisions.