MedicaidReimbursementLow impact
Personal Needs Allowance Increase
Kentucky Medicaid·KY · Geriatrics·Provider Letter
Effective date
Jul 1, 2024
We identified it
Jun 20, 2026
Summary
Kentucky Medicaid increased the Personal Needs Allowance (PNA) from $40 to $60 per month effective July 1, 2024 for long-term care residents. This allowance is deducted from gross income when calculating patient liability for nursing facilities, ICF/IIDs, institutional hospice, and IPACE programs.
Action Required
Immediately: Billing team should verify that patient liability calculations for Kentucky Medicaid long-term care residents reflect the increased $60 PNA deduction (up from $40) for services provided after July 1, 2024. Update any internal calculation tools or worksheets used for determining patient liability amounts for nursing facilities, ICF/IIDs, institutional hospice, and IPACE services.