Federal law requires Medicaid recipients to contribute to the cost of long-term care. The contribution amount is determined by deducting certain amounts from a recipient's monthly income. One of the permitted deductions is the personal needs allowance (PNA), an amount of the Medicaid recipient’s own income that can be kept and spent on personal items. After deducting the PNA and other allowable deductions, all remaining income goes toward the cost of care.
As of January 1, 2020, subject to the availability of funds appropriated for this specific purpose, the PNA is:
Subject to the availability of funds appropriated for this specific purpose, the PNA for clients being served in medical institutions and in residential settings, is:
Beginning January 1, 2023, the PNA for clients receiving at home and community-based waiver services authorized by home and community services while living at home shall:
PRO: PNA supports people having a choice about where they can receive their care. Individuals are safer when they stay in their own home, but they still need to pay for rent, food and other necessities. Right now people are only allowed to keep 100 percent of the federal benefit rate, while other programs allow a PNA up to 300 percent of the federal benefit rate. Living on just $1,074 a month causes great anxiety, stress and even leads many to use food banks. Some choose instead to live elsewhere, like skilled nursing facilities covered by Medicaid which is five times the cost of in-home care. Washington has the 13th highest cost of living yet 30 other state have a higher PNA. The national average PNA is $2,024. Ten thousand people turn 65 every day in the U.S. Seniors and those with disabilities want to remain in their homes as long as possible, however, the current system discourages this. Increasing the PNA will help address this problem. This is funded in the Governor's budget and helps to dismantle poverty.