H.R. 5685: Personal Needs Allowance Modernization Act

This bill, known as the Personal Needs Allowance Modernization Act, aims to amend the Social Security Act to increase the minimum monthly personal needs allowance for individuals and couples who are receiving Medicaid while being institutionalized. Here’s a breakdown of the key components of the bill:

1. Increase in Personal Needs Allowance

The legislation proposes to raise the minimum monthly personal needs allowance for institutionalized individuals from:

• $30 to $60 starting January 1, 2026, for individual recipients.
• $60 to $120 starting January 1, 2026, for couples.

2. Adjustment with Social Security Increases

The bill includes a provision that links future increases in the personal needs allowance to any percentage increases in Social Security benefits. Specifically:

• If the benefit amounts under title II of the Social Security Act are increased (after November 2025), then the personal needs allowance amounts will also increase by the same percentage automatically.

3. Purpose of the Increase

The intent behind this increase is to ensure that individuals and couples receiving Medicaid while in institutions are able to have a sufficient amount of personal funds to cover their personal expenses, such as toiletries, clothing, and other needs not covered by Medicaid or the institution itself.

4. Legislative Process

The bill was introduced in the House of Representatives and has gone through the initial legislative stages. It is currently referred to the Committee on Energy and Commerce for review.

Relevant Companies

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