What Can a Personal Needs Allowance Be Used For?
Understand the Personal Needs Allowance (PNA) for long-term care residents. Learn what expenses it covers and what it doesn't.
The Personal Needs Allowance (PNA) provides a small monthly sum to individuals residing in long-term care facilities, particularly those receiving Medicaid. This allowance serves a specific purpose, enabling residents to cover personal expenses not otherwise provided by the facility or their healthcare benefits.
What is the Personal Needs Allowance
The Personal Needs Allowance is a designated portion of a long-term care resident’s income that they are permitted to keep each month. Its fundamental purpose is to ensure that residents have funds available for personal items and services that are not already covered by Medicaid or the facility’s standard provisions.
Federal law mandates that Medicaid-funded nursing home residents receive a Personal Needs Allowance. While a federal minimum amount exists, individual states have the authority to set their own PNA rates, often higher than the federal floor.
Allowable Uses of the Personal Needs Allowance
The Personal Needs Allowance is intended for categories of expenses that fall outside the scope of what the long-term care facility or Medicaid is obligated to provide. These funds empower residents to purchase items that contribute to their personal comfort and well-being. Allowable uses generally include expenditures related to personal care, communication, entertainment, and clothing.
The allowance covers personal care items beyond the basic necessities supplied by the facility, allowing for individual preferences. It also supports communication with loved ones and engagement in recreational activities. Funds can be used for clothing items, ensuring residents have appropriate attire that reflects their personal style and needs.
Examples of Permitted Spending
The Personal Needs Allowance can be used for a range of specific items and services that enhance a resident’s personal life. For personal grooming and care, funds might cover services like haircuts, manicures, or the purchase of preferred brands of toiletries, such as specialty shampoos or lotions, if they are not the basic items provided by the facility. Communication needs can be met through buying stamps, stationery, or contributing to a personal phone bill.
For entertainment and leisure, residents can use their allowance for items such as magazines, books, small craft supplies, or snacks from vending machines. This also extends to clothing and shoes, allowing residents to maintain a personal wardrobe. In some instances, depending on state-specific rules, a small portion of the allowance might even be used for purchasing minor gifts.
Understanding Non-Allowable Expenses
The Personal Needs Allowance has specific limitations regarding its use, primarily designed to prevent its application towards expenses already covered by other means. Funds from the PNA cannot be used for the direct costs associated with facility care, such as room and board, as these are typically covered by Medicaid or other payment sources. Similarly, it cannot pay for medical services or supplies that are already part of Medicaid’s comprehensive coverage.
Furthermore, the allowance should not be spent on items or services that the long-term care facility is legally required to provide to its residents. For example, basic hygiene products like toothbrushes, standard soaps, or incontinence supplies are usually furnished by the facility and therefore cannot be purchased using PNA funds. The PNA is specifically for personal choices and comforts beyond the essential provisions. Any unspent PNA funds accumulate and count towards a resident’s total assets, which must remain below certain limits (often around $2,000) to maintain Medicaid eligibility.