Double The Personal Needs Allowance?

The Medicaid Personal Needs Allowance (PNA) is a monthly amount that nursing home residents receiving Medicaid can keep from their income to cover personal expenses not paid for by Medicaid. The PNA varies by state, with some states allowing up to $ 200 per month.  In Michigan, it is $ 60 per month.  Yoopers are agitating for an increase:

https://www.uppermichiganssource.com/2026/03/06/tv6-investigates-state-legislators-work-increase-michigans-medicaid-funded-personal-needs-allowance/

TV6 Investigates: state legislators work to increase Michigan’s Medicaid-funded Personal Needs Allowance
By Griffin Weinberg - March 6, 2026

UPPER MICHIGAN (WLUC) - An Upper Peninsula nursing home resident may be getting his wish after writing to state legislators trying to increase Michigan’s Personal Needs Allowance.

People who live in nursing homes and are covered by Medicaid receive a set monthly allowance to use however they’d like.

All 50 states and the District of Columbia decide how much money is in their respective Medicaid-funded PNA. However, federal law requires the minimum PNA to be set at $30/month. The maximum allowance is $200/month. In Michigan, the PNA is $60/month.

Mel Joslin, a Medicaid-covered resident at the Marquette County Medical Care Facility in Ishpeming, is leading the effort to see that number get doubled.

“That’s only fair to ask for that because everybody else gets raises and, I mean, we just get left out in the cold,” Joslin said.

People on Medicaid are responsible for their patient liability, or ‘share of cost.’ That means most people on Medicaid use most, if not all, of their monthly income to cover the cost of their care.

What’s left for Joslin to spend however he’d like comes from Medicaid’s PNA.

“I run out quick. I run out (in) about a tenth of the month,” Joslin said.

Joslin uses part of his allowance to pay for soaps and lotions to treat his skin. He says it’s hard to ration $60 over 30 days.

“(I have) credit card bills. Even to get a haircut costs money,” Joslin said. “A lot of these people, they just can’t function on $60 and they’re just barely getting by.”

According to the American Council on Aging, Alaska’s PNA is at the maximum of $200. Alabama’s is the minimum $30. The average PNA in the United States is about $76, making Michigan’s PNA below the national average.

According to the Michigan Long Term Care Ombudsman Program, the state’s PNA hasn’t been changed in more than 30 years.

To find out why, we reached out to the Michigan Department of Health and Human Services (DHHS), the state’s primary payer for long-term care.

In a statement, the DHHS said:

“As the state’s primary payer for long‑term care, ensuring that nursing facility residents can maintain a basic level of independence and quality of life is a priority for the Michigan Department of Health and Human Services.

Federal law requires that a Medicaid-funded nursing home resident receive a Personal Needs Allowance (PNA) and the federally mandated PNA is set at $30 a month. States can allow for a higher PNA and Michigan’s PNA is set at $60 per month, allowing residents to keep $60 from their income for personal needs. That amount is deducted from the patient pay liability, which means Medicaid covers a larger share of the cost of care than it would if the PNA were lower or did not exist.

Increasing the PNA in Michigan would require additional Medicaid funding, as any increase reduces the amount residents contribute toward their cost of care and shifts those costs to the program. If funding were appropriated by the Legislature to support such a change, it would then require CMS approval through a State Plan Amendment."

As president of the Marquette County Medical Care Facility’s resident council, Joslin says he commits himself to improving the quality of life for his fellow residents.

“If the room is too cold, or something like that, I get to the bottom of it. If they have any other complaint, I try and solve it,” Joslin said.

Joslin also collected feedback from residents about the current PNA. Then, Joslin sent that feedback to Rep. Karl Bohnak (R-109th State House District).

“What we’re asking for is $125 (per month) and a cost-of-living allowance that grows and coincides with Social Security every year,” Joslin said.

Bohnak said he received those letters. Now, Bohnak says he’s working with Rep. Greg Markannen (R-110th State House District) and Rep. Dave Prestin (R-108th State House District) on drawing up legislation.

“We’re in the process of getting a legislative fix for this because it’s high time that this changed,” Bohnak said. “Not as much as Alaska, but certainly a heck of a lot more than some of the other states. Even California only has $35 a month for Personal Needs Allowance.”

Bohnak says he wants to double Michigan’s PNA to $120.

“We wanna try to get it in the middle there, and I think that would work out, (and) hopefully help these residents because they certainly are overdue for a raise,” Bohnak said.

Any set of bills drafted up by Bohnak, Markkanen and Prestin will have to pass through the appropriate committee before making it to the House of Representatives and into law.