State invests $6.4 million to help older adults age in place
SANTA FE – An initial evaluation of New MexiCare shows the state-funded caregiver program is helping reduce strain and stress among family and friends caring for older adults, while also showing promising potential in reducing unnecessary health care costs.
The evaluation was performed by CD Consulting—an independent, Santa-Fe based research and strategy firm—and found meaningful improvements in friend and family caregivers’ well-being after six months in the program. Among caregivers who completed the six-month evaluation, 85% reported reduced financial strain. Participants also reported reductions in emotional and physical stress, as well as less missed time at work due to caregiving responsibilities.
Those benefits come with the potential for significant cost savings by helping older adults remain at home. The average annual cost of a nursing home in New Mexico is around $117,000, compared with an average annual cost of $15,000 for a New MexiCare participant. Even a short delay in the need for long-term care could generate substantial savings, while allowing an older adult to remain at home and in their community longer.
Beyond the financial benefits, the findings suggest New MexiCare may also have broader implications for the health care system. By helping families manage the daily demands of caregiving, New MexiCare may reduce reliance on more costly forms of care. After six months, older adults participating in the program had a 24% lower probability of an emergency room visit compared to those not enrolled in the program.
More than 768 older adults statewide are currently receiving assistance through New MexiCare, which provides financial support to friend and family caregivers who are not enrolled in Medicaid. Eligible New Mexicans can receive up to $12,000 annually to help cover caregiving expenses, including respite care, home modifications and transportation.
“Caregiving is essential work, and we have a shared responsibility to ensure families have access to the services and resources that make that work sustainable,” said Emily Kaltenbach, Aging Department secretary. “When we support caregivers, we strengthen communities and make it possible for more New Mexicans to remain in their homes.”
Demand for the program continues to climb as more older adults and caregivers across the state seek home and community-based support services. There are an additional 169 applications pending.
According to the AARP Public Policy Institute, approximately 390,000 New Mexicans provide an estimated 340 million hours of unpaid care each year, representing an estimated economic value of $6.2 billion. For many family caregivers, providing that care can also come with significant financial and personal costs.
“New MexiCare is helping us rethink what long-term care can look like in New Mexico,” said Dr. Angelina Flores-Montoya, Aging Department deputy secretary. “By investing in caregivers earlier, we can help more New Mexicans remain independent and avoid more costly care; this is exactly the kind of investment we should be making as New Mexico’s older adult population continues to grow.”
Since program inception in October 2024, the New MexiCare program has distributed $6.4 million to program participants and assisted over 1000 New Mexicans. The New MexiCare program is part of the state’s broader effort to expand access to long-term care supports and strengthen home and community-based services for older adults and their caregivers.
The Aging and Long-Term Services Department will have a hearing with the Legislative Finance Committee on Wednesday, August 26th in Farmington to discuss the future of the New MexiCare Program.
For more information about New MexiCare, visit aging.nm.gov or call 800-432-2080.