Citations Affected: IC 12-10-6-1; IC 12-15.
Synopsis: Personal needs allowance. Increases the monthly personal
allowance for residential care assistance recipients and Medicaid
recipients from $52 to $60.
Effective: July 1, 2006.
January 12, 2006, read first time and referred to Committee on Public Health.
A BILL FOR AN ACT to amend the Indiana Code concerning
Medicaid.
division; or
(2) a reasonable and adequate rate to meet the costs, determined
by generally accepted accounting principles, that are incurred by
efficiently and economically operated facilities in order to provide
care and services in conformity with quality and safety standards
and applicable laws and rules.
(d) The recipient shall be paid or allowed to retain from the
recipient's income a monthly personal allowance. The amount:
(1) is fifty-two dollars ($52); sixty dollars ($60);
(2) is exempt from income eligibility consideration by the
division; and
(3) may be exclusively used by the recipient for personal needs.
(e) In addition to the amount that may be retained as a personal
allowance under this section, an individual is allowed to retain an
amount equal to the individual's state and local income tax liability.
The amount that may be retained during a month may not exceed
one-third (1/3) of the individual's state and local income tax liability for
the calendar quarter in which the month occurs. This amount is exempt
from income eligibility consideration by the division. The amount
retained shall be used by the individual to pay state or local income
taxes owed.
(f) In addition to the amounts that may be retained under
subsections (d) and (e), an eligible individual may retain a Holocaust
victim's settlement payment. The payment is exempt from income
eligibility consideration by the division.
(g) The personal allowance for one (1) month for an individual
described in subsection (a) is the amount that an individual would be
entitled to retain under subsection (d) plus an amount equal to one-half
(1/2) of the remainder of:
(1) gross earned income for that month; minus
(2) the sum of:
(A) sixteen dollars ($16); plus
(B) the amount withheld from the person's paycheck for that
month for payment of state income tax, federal income tax,
and the tax prescribed by the federal Insurance Contribution
Act (26 U.S.C. 3101 et seq.); plus
(C) transportation expenses for that month; plus
(D) any mandatory expenses required by the employer as a
condition of employment.
(h) The division of disability, aging, and rehabilitative services, in
cooperation with the state department of health taking into account
licensure requirements under IC 16-28, shall adopt rules under
IC 4-22-2 governing the reimbursement to facilities under this section.
The rules must be designed to determine the costs that must be incurred
by efficiently and economically operated facilities to provide room,
board, laundry, and other services, along with minimal administrative
direction to individuals who receive residential care in the facilities
under this section. A rule adopted under this subsection by:
(1) the division; or
(2) the state department of health;
must conform to the rules for residential care facilities that are licensed
under IC 16-28.
(i) A rate established under this section may be appealed according
to the procedures under IC 4-21.5.
(j) The division shall annually review each facility's rate using the
following:
(1) Generally accepted accounting principles.
(2) The costs incurred by efficiently and economically operated
facilities in order to provide care and services in conformity with
quality and safety standards and applicable laws and rules.