What’s Changing?
Before: People receiving long-term care Medicaid (in a nursing home or similar facility) were allowed to keep $30 per month of their income for personal use.
Starting October 1, 2025: That amount doubles to $60 per month.
🧓 What the Personal Needs Allowance Covers
This small amount of money is set aside each month for personal expenses that Medicaid doesn’t pay for — things like:
Clothing, shoes, and toiletries
Haircuts and grooming
Snacks or small treats
Postage, phone calls, or minor gifts
Activities and outings
Essentially, it’s spending money that helps maintain dignity and autonomy while living in a care facility.
📊 What It Means for Residents
More financial freedom: Residents will now have twice as much personal spending money.
No reduction in benefits: This increase doesn’t change Medicaid eligibility or reduce what Medicaid pays to the facility.
Automatically applied: Facilities and Medicaid caseworkers will update budgets automatically — recipients don’t need to do anything.
👩💼 For Families or Clients
If you or your loved one has an active Medicaid application or is already approved, your elder law firm or the facility’s billing department will recalculate the monthly patient liability (the portion of income paid to the facility) to reflect the new $60 allowance.
If our firm is assisting you with an active Medicaid application, we will recalculate your eligibility under the new amount. If you have questions or need help understanding
