Increase the personal needs allowance of nursing facility residents from $75.00 to $100 per month.

Rhode Island Bill Summary: Nursing Home Residents' Personal Spending Money

This bill would increase the amount of spending money that Medicaid-funded nursing home residents are allowed to keep each month. Currently, Rhode Island allows these residents to keep $75 per month for their own personal use — this is called a "personal needs allowance." The bill would raise that amount to $100 per month, an increase of $25.

This change would affect Rhode Island residents who live in nursing facilities and rely on Medicaid to cover their care costs. When Medicaid pays for nursing home care, most of a resident's income (such as Social Security) goes directly toward paying for that care. The personal needs allowance is the small portion residents are permitted to keep for themselves to spend on everyday personal items — things like toiletries, clothing, snacks, phone calls, or small entertainment expenses that the facility does not provide.

The bill has been introduced and sent to the Senate Finance Committee, where lawmakers will review its potential costs and whether to move it forward. Because more residents would retain slightly more of their income, the state's Medicaid program could see a modest reduction in the funds it collects from residents to offset care costs. The practical impact on the state budget would depend on how many residents are affected.