Senate File 476 - Introduced SENATE FILE 476 BY COMMITTEE ON HEALTH AND HUMAN SERVICES (SUCCESSOR TO SF 255) A BILL FOR An Act relating to the personal needs allowance under the 1 medical assistance program. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 2579SV (3) 91 lh/ko S.F. 476 Section 1. Section 249A.30A, Code 2025, is amended to read 1 as follows: 2 249A.30A Medical assistance personal needs allowance. 3 1. The personal needs allowance under the medical 4 assistance program, which may be retained by a person who is a 5 resident of a nursing facility, an intermediate care facility 6 for persons with an intellectual disability, or an intermediate 7 care facility for persons with mental illness, as defined in 8 section 135C.1 , or a person who is a resident of a psychiatric 9 medical institution for children as defined in section 135H.1 , 10 shall be fifty sixty-five dollars per month. 11 2. A resident who has income of less than fifty sixty-five 12 dollars per month shall receive a supplement from the state in 13 the amount necessary to receive a personal needs allowance of 14 fifty sixty-five dollars per month. The general assembly shall 15 annually appropriate a sufficient amount from the general fund 16 of the state to the department of health and human services for 17 this purpose. 18 3. Beginning July 1, 2026, the department shall annually 19 increase the personal needs allowance by a percentage equal to 20 the annual percentage change in the United States department of 21 labor, bureau of statistics, consumer price index for all urban 22 consumers for the midwest region, all items, or a successor 23 index. The personal needs allowance shall not exceed one 24 hundred dollars per month. 25 4. The department shall review the personal needs 26 allowance, in consultation with the long-term care ombudsman, 27 and submit a report to the general assembly containing the 28 number of recipients and disbursements made under this section, 29 including any recommendations the department deems necessary. 30 Beginning the second Monday in January 2027, the department 31 shall biennially submit a report on or before the second Monday 32 in January. 33 EXPLANATION 34 The inclusion of this explanation does not constitute agreement with 35 -1- LSB 2579SV (3) 91 lh/ko 1/ 2 S.F. 476 the explanations substance by the members of the general assembly. 1 This bill relates to the personal needs allowance under the 2 medical assistance program. 3 The personal needs allowance covers a persons personal 4 expenses not covered by the medical assistance program. 5 Current law provides that a person who is a resident of a 6 nursing facility, an intermediate care facility for persons 7 with an intellectual disability or mental illness, or a 8 psychiatric medical institution for children may retain a 9 personal needs allowance of $50 per month. A resident who has 10 an income of less than $50 dollars per month shall receive a 11 supplement from the state to receive a personal needs allowance 12 of $50 per month. The bill increases the personal needs 13 allowance to $65 per month and a resident with an income of 14 less than $65 per month shall receive a supplement from the 15 state. 16 The bill provides that beginning July 1, 2026, the 17 department shall annually increase the personal needs allowance 18 by a percentage equal to the annual percentage change in the 19 United States department of labor, bureau of labor statistics, 20 consumer price index for all urban consumers for the midwest 21 region, all items, or a successor index. The personal needs 22 allowance shall not exceed $100 per month. 23 Beginning January 2027, the department of health and 24 human services shall review the personal needs allowance, in 25 consultation with the long-term care ombudsman, and biennially 26 submit a report relating to the review to the general assembly 27 on or before the second Monday in January. 28 -2- LSB 2579SV (3) 91 lh/ko 2/ 2