Effective July 1, 2024, the Medicaid Minimum Monthly Maintenance Needs Allowance (also known as “MMMNA”) has increased from $2,465.00 to $2,555.00. This annual adjustment to the allowance was announced in Medicaid Communication No. 24-06. In addition to the increase of MMMNA, an increase of excess shelter costs of the community spouse is also provided from $739.50 to $766.50. The utility allowance of $850.00 remains unchanged.
The MMNA is designed to protect the spouse of the Medicaid recipient from impoverishment. In general, Medicaid mandates that all income of the spouse receiving Medicaid benefits (referred to as the “Institutionalized Spouse”) shall be used to pay for the Institutionalized Spouse’s care. However, in some situations, most of the couple’s income is in the name of the Institutionalized Spouse, and the Community Spouse’s income is not enough to live on. In such cases, the Community Spouse is entitled to some or all the monthly income of the Institutionalized Spouse.
The MMNA is calculated for a Community Spouse according to a complicated formula that is based on his or her housing costs. Under the regulations, there is a minimum monthly maintenance needs allowance and a maximum monthly maintenance needs allowance. If the Community Spouse’s own income falls below the MMMNA amount, the shortfall is made up from the Institutionalized Spouse’s income.
In addition to MMMA, there are two extra protections for the Community Spouse: the excess shelter allowance and the utility allowance. In the event the Community Spouse’s shelter cost is more than the shelter allowance, he or she will be entitled to an extra shelter allowance. In the event the Community Spouse is also paying utilities directly, he or she will receive an extra utility allowance.
The increased MMMNA will also affect the calculation of the maintenance allowance for certain other family members residing with the Community Spouse. The family member deduction is equal to one-third of the amount by which $2,555 exceeds the family member’s own income. The family member deduction is calculated individually for each family member.
Eligible family members include the following:
- Children under the age of 21.
- Children over the age of 21 who are claimed as dependents for federal tax purposes by either member of the couple.
- Parents of either member of the couple who are claimed as dependents for federal tax purposes.
- Siblings of either member of the couple who are claimed as dependents for federal tax purposes. Siblings include:
- Brothers or sisters.
- Half-brothers or half-sisters.
- Siblings through adoption.
A copy of Medicaid Communication No. 24-06 is attached here.
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