Pursuant to Medicaid eligibility requirements, an individual receiving
Institutional Care Program (“ICP”) Medicaid may only retain a limited portion
of their monthly income to pay for those personal expenses not covered by
Medicaid. The income kept by the Medicaid recipient is known as the
personal needs allowance. The balance of the Medicaid recipient’s income
is used to pay the nursing home where the individual resides. Prior to
July 1, 2014, the personal needs allowance was $35.00. This is the money
the Medicaid recipient could use to purchase those things that Medicaid does
not pay for such as haircuts, meals dining out, gifts for family members,
etc. In this day and age, $35.00 per month does not go very far.
This problem was recently recognized by and addressed by the Florida
Legislature.
General Appropriations Act (House Bill 5001), signed by the Governor on June 2,
2014 and effective July 1, 2014, increased the personal needs allowance from
$35.00 per month to $105.00 per month. This is the first increase to the
personal needs allowance in the history of ICP Florida Medicaid that we are
aware of. The increase is especially relevant for those Medicaid
recipients who fund a Qualified Income Trust (“QIT”) each month in order to
maintain their Medicaid eligibility. Those individuals should be aware
that the increase may change the amount of income to be funded to the QIT.
If you have any questions related to the increase in the personal needs
allowance or regarding ICP Medicaid in general, please contact the Law Offices
of Hoyt & Bryan at (407) 977-8080.
