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Committee advances bill to raise nursing home personal needs allowance to $85
Summary
The House Aging & Older Adult Services Committee unanimously moved House Bill 1606, increasing the monthly Medical Assistance personal needs allowance for nursing home residents from $60 to $85; committee fiscal staff estimated state costs of about $2.8 million for Jan–June 2026 and $5.5 million for FY 2026–27.
House Bill 1606, which would increase the monthly personal needs allowance for Medical Assistance-eligible nursing home residents from $60 to $85, was reported out of the House Aging & Older Adult Services Committee.
The change would raise the amount residents may keep from their Medicaid-covered income for discretionary personal purchases such as clothing, toiletries or occasional meals off-site, sponsors said.
Chuck, committee staff, explained that HB 1606 "amends section 43 44 3.8 of the human services code by increasing the personal needs allowance that is deducted from a medical assistance eligible person's gross income from $60 per month to $85 per month." Representative Pickett and Representative Sanchez, co-prime sponsors, described constituent stories about residents lacking small discretionary funds. Representative Pickett recounted a constituent who "began communicating with me on this about 2 years ago" and described how limited discretionary funds constrained simple purchases.
Executive Director Miller provided a fiscal estimate to the committee: based on an enrollment of 42,600 nursing home residents receiving Medical Assistance as of March 2025, the additional cost would be about $2,800,000 for January through June 2026 and about $5,500,000 in state funds for fiscal year 2026–27. Miller noted the estimated cost is based on current enrollment figures provided to the committee.
Sponsors noted the allowance was last raised from $45 to $60 by statute or action in 2007 and that a previous increase had been enacted administratively by DHS after the last legislative effort did not become law in the Senate. The bill record lists support from AARP, the Center for Advocacy for the Rights and Interests of Elders and the Pennsylvania Health Care Association; staff said there was no known opposition in committee.
The committee moved the bill by roll call and recorded no negative votes; HB 1606 will advance to the full House calendar. Members and sponsors characterized the increase as modest but meaningful to residents who lack family support for routine discretionary purchases.
The committee also noted an upcoming informational meeting on the Department of Aging's PA Care Kit program on Thursday, June 26 at 10 a.m.
