Revision 24-4; Effective Dec. 1, 2024

Revision 18-1; Effective March 1, 2018

Determine the copayment for a Medicaid eligible individual or couple residing in an institution, receiving services under the Program of All Inclusive Care for the Elderly (PACE) in a PACE setting, or receiving services under a Home and Community Based Waiver program.

When determining the copayment, consider the total income available to the individual from all sources. Certain payments that are not income and certain exempt income are not considered in the copayment budget. The total income for the copayment budget may be different from the total income for the eligibility budget.

When determining the copayment, do not include the following:

• exempt income (see Section E-2000);
• things that are not income (see Section E-1700), such as:
  • medical care and services;
  • certain social services;
  • receipts from the sale of a resource;
  • miscellaneous items, such as income tax refunds;
  • proceeds of a loan;
  • wage-related payments;
  • mandatory payroll deductions from earned income (see E-1770); and
  • cafeteria plans.
• interest or dividends accrued on certain excluded or partially excluded resources (see E-3331.2);
• interest and dividends earned on an ABLE account (see E-3331.4); and
• VA Aid and Attendance allowance, housebound allowance, and payment adjustment for unusual medical expenses (see E-4300, E-4311.2, E-4315). Reminder: If these payments are deposited into a qualifying income trust (QIT) account, they are countable as copayment.

Note: Income tax withheld from unearned income is not a deductible expense for the copayment calculation.

Revision 09-4; Effective December 1, 2009

See Section E-5000, Variable Income.

See Section E-3331, Interest and Dividends.

• Determine if any interest or dividends are accrued on fully countable resources and count the interest or dividends as income in the co-payment budget.
• Determine if any interest or dividends are accrued on all other resources and count the interest or dividends accrued as income in the co-payment budget (refer to the treatment of that particular resource as outlined in the handbook).

Revision 12-1; Effective March 1, 2012

HHSC deducts the following amounts, in the following order, from the person's total countable income:

1. Personal needs allowance. See Section H-1500, Personal Needs Allowance (PNA).
2. Guardianship fees. See Section H-1550, Guardianship Fees.
3. Maintenance needs of spouse. See Section J-7200, Spousal Co-Payment.
4. Maintenance needs of family (for a person with a family at home, an additional amount for the maintenance needs of the family). See Section H-1600, Dependent Allowance.
5. Incurred Medical Expenses. See Section H-2000, Incurred Medical Expenses.

Optional deduction: Allowance for home maintenance. See Section H-1700, Deduction for Home Maintenance.

Revision 24-1; Effective March 1, 2024

A personal needs allowance (PNA) is the amount of income a Medicaid recipient in an institutional setting may keep for their personal use. The PNA cannot be applied towards the recipient’s cost of medical assistance furnished by the facility. 

SSI  recipients who live in an institutional setting and receive the $30 reduced federal benefit receive a state supplement. This ensures they receive a PNA equal to the minimum level established by the state.

Beginning Jan.1, 2024, the PNA is $75.

From Jan. 1, 2006, through Dec. 31, 2023, the PNA was $60.

From Sept. 1, 2003, through Dec. 31, 2005, the PNA was $45.

From Sept. 1, 2001, through Aug. 31, 2003, the PNA was $60.

From Sept. 1, 1999, through Aug. 31, 2001, the PNA was $45. Before that, PNA was $30.

Note: Refer to E-4300, VA Benefits, for treatment of payments from the Department of Veterans Affairs. Refer to E-4311.2, $90 VA Pension and Institutional Setting, regarding automation limitations and the VA $90 capped pension.

H-1550 Guardianship Fees

Revision 19-4; Effective December 1, 2019

When determining the co-payment for a person receiving services in an institutional setting, guardianship fees, up to an amount set by the court, are deducted from the person's total countable income.

The allowable court-ordered guardianship fee deduction may include the following:

• Monthly guardianship fees up to $250
• Costs related to establishing the guardianship up to $1,000
• Costs related to terminating the guardianship up to $1,000
• Administrative costs related to the guardianship up to $1,000 over a three-year period

Note: Costs related to establishing or terminating the guardianship can exceed $1,000 if the costs in excess are supported by documentation acceptable to the court and the costs are approved by the court. Costs might include compensation and expenses for an attorney ad litem, guardian ad litem, and reasonable attorney fees for an attorney representing the guardian.

Only allow a deduction for actual amounts in the court order.

Allow the reduction in the person's co-payment to be effective the later of the following:

• the month in which the judge signs the court order awarding guardianship fees;
• the first month of Medicaid eligibility in which the person has a co-payment; or
• the first day of the month the person provides HHSC with a copy of the court order.

Route any administrative cost more than $1,000 over a three-year period, or any cost exceeding the $1,000 for establishing or terminating the guardianship, through the regional attorney for guidance.

Do not allow a reduction in the person's co-payment for guardianship fees ordered after HHSC receives verification that the person has died. If the date of death is not verified, staff must clear the discrepancy. Do not allow the guardianship fees as a deduction in the co-payment until the discrepancy has been cleared.

Related Policy

Date of Death Denials and Verification Sources, B-9300
Guardians and Other Agents, F-1231
Order of Deductions from Countable Income, H-1400

Revision 23-3; Effective Sept. 1, 2023

A dependent family member may be either spouse's minor or dependent children, dependent parents and dependent siblings (including half-brothers, half-sisters and siblings gained through adoption) who were living in the institutionalized person's home before the person entered the facility, and who are unable to support themselves outside the person's home because of medical, social or other reasons.

Non-Spousal

For individual and couple budgets, calculate the dependent allowance by subtracting the dependent's income from the SSI federal benefit rate for an individual. 

Note: Mandatory payroll deductions also apply to a dependent's earned income.

Spousal

For spousal budgets, calculate the dependent allowance by subtracting the dependent's income from 150% of the monthly federal poverty level (FPL) for a family of two and dividing the remainder by three. 

Note: Mandatory payroll deductions also apply to a dependent's earned income.  

Related Policy

Spousal Impoverishment Dependent Allowance, J-7400

Revision 20-2; Effective June 1, 2020

HHSC allows a deduction from a co-payment if a person intends to return home within six months of admission to an institutional setting and needs to meet expenses in maintaining the home. The deduction is based on the person's mortgage or rent payment and average utility charges, excluding phone. The amount deducted cannot exceed the SSI income limit, not including the $20 disregard. The first month of the six-month period is the month of admission to the institution.

Note: A separate deduction for maintenance of the home is not allowable in companion cases. The spousal allowance provides for home maintenance in those cases.

The home maintenance deduction is allowable if:

• the person notifies the eligibility specialist that he expects to be in an institutional setting for at least 30 consecutive days, but no more than six months;
• the eligibility specialist receives a practitioner's certification within 90 days of admission. The practitioner certifies that the person is likely to leave the institution within six months of admission; and
• the eligibility specialist receives evidence within 90 days of admission that the person needs to maintain and provide for the expenses of the home to which he may return.
  
  Note: The day of admission to the institutional setting is day zero.
  • Example 1: A person entered a nursing facility on March 1. An application was received on May 30, which included a completed and signed Form H1280, Statement of Residence Maintenance Needs. The applicant signed the form on March 28 and the physician's signature was dated April 15. The day of entry to the nursing home on March 1 would be counted as day zero. The 90th day would be May 30. It is calculated by the following: 31 days in March (30 countable days, since March 1 would be counted as day zero), 30 days in April (30 countable days) and 31 days in May (30 countable days) for a total of 90 days. May 31 would be 91 days. Application was received on May 30; thus, Form H1280 was received by the 90th day.
  • Example 2: A person entered a nursing facility on April 1. An application was received on July 10, which included a completed and signed Form H1280. The applicant signed the form on April 29 and the physician's signature was dated May 15. The day of entry to the nursing home on April 1 would be counted as day zero. The 90th day would be June 30. It is calculated by the following: 30 days in April (29 countable days, since April 1 would be counted as day zero), 31 days in May (31 countable days) and 30 days in June (30 countable days) for a total of 90 days. Application was received on July 10; thus, Form H1280 was not received by the 90th day. The individual is not eligible for the home maintenance deduction.

Use Form H1280, Statement of Residence Maintenance Needs, to obtain the person's and practitioner's declaration. Use the amount reported on Form H1280 as the home maintenance deduction amount as long as it does not exceed the SSI income limit, not including the $20 disregard. No additional verification is needed.

To ensure the home maintenance allowance is included as a deduction in the recipient’s co-payment calculation, staff makes the following selections within the appropriate Logical Unit of Work (LUW):

• on the Shelter Expense LUW, select an expense type of “Rent” or “Mortgage”;
• on the Utility Expense LUW, select the expense type “gas/propane, water, electric”; and
• select Form H1280, Statement of Residence Maintenance Needs, as verification for both the Shelter and Utility Expense LUWs.

Note: If any other source of verification is selected, the home maintenance allowance will not be allowed in the co-payment.

The system will automatically end the home maintenance allowance in the sixth month after the month of admission and will:

• end date the appropriate shelter or utility records;
• adjust the ongoing co-payment; and
• generate Form TF0001, Notice of Case Action, and Form TF0001P, Provider Notice, to notify both the recipient and the facility of the ongoing co-payment.

Revision 26-1; Effective March 1, 2026

The Medicare Part B premium is deducted from the Social Security or Railroad Retirement check, in most cases. Sometimes a person is billed for the Medicare Part B premium by quarterly invoice.

The standard Medicare Part B premium changes from year to year. For 2026 the standard premium is $202.90per month. This amount can vary due to several factors:

• The premium can be higher than standard if a person did not enroll in Medicare the year they became eligible to enroll.
• The premium can be lower than standard if the Retirement, Survivors and Disability Insurance (RSDI) cost-of-living adjustment (COLA) is less than any increase in the monthly Medicare premium. The new monthly RSDI benefit cannot be less than the previous year's benefit.
• The premium can be lower than standard if a person is enrolled in a Medicare Advantage Plan (Medicare Part C), which may offer a Medicare Part B premium discount.

Staff must use the Medicare Part B premium amount as verified in the State Online Query (SOLQ) or Wire Third-Party Query (WTPY).

Refer to the chart below for current and historical Medicare Part B premiums.