Starting January 1, 2025, Pennsylvania has increased the Personal Needs Allowance (PNA) for nursing home Medicaid recipients from $45 per month to $60 per month. This is welcome news for those relying on Medicaid to cover the high costs of nursing home care, as it provides a modest but meaningful boost to their monthly allowance.
What Is the Personal Needs Allowance?
When someone qualifies for Medicaid to help pay for nursing home care, most of their monthly income must be contributed toward the cost of their care. However, Medicaid allows recipients to keep a small amount of their income each month for personal use—this is called the Personal Needs Allowance.
The PNA helps cover the cost of small, everyday expenses that make life in a nursing home more comfortable, such as:
Personal hygiene items
Clothing
Haircuts or grooming services
Snacks or special treats
Minor recreational activities
For many Medicaid recipients, the PNA is the only income they retain each month for discretionary spending.
Why Is This Increase Significant?
This adjustment marks the first change to Pennsylvania’s PNA since 2007, when it was set at $45. In the nearly two decades since then, inflation has significantly increased the cost of personal items and services. By raising the PNA to $60, Pennsylvania acknowledges the need to better align this allowance with today’s financial realities, giving Medicaid recipients slightly more breathing room for their personal expenses.
What Does This Mean for Current Medicaid Recipients?
If you or a loved one are currently receiving Medicaid for nursing home care, the increase means you will now have an extra $15 per month to spend on personal needs. While this may seem small, every bit helps when managing limited income, and this change could make a meaningful difference in enhancing your or your loved one's quality of life.
Navigating Medicaid eligibility and nursing home care planning can feel overwhelming, especially with frequent updates to laws and allowances like this. At Crane Law, PC, we help individuals and families protect their assets while ensuring Medicaid eligibility. Whether you’re already a Medicaid recipient or are just starting to explore your options, we’re here to guide you every step of the way.