Increase in Personal Needs Allowance

     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.