SENATE HEALTH, HUMAN SERVICES AND SENIOR CITIZENS COMMITTEE

STATEMENT TO

SENATE, No. 3319

STATE OF NEW JERSEY

DATED:  OCTOBER 7, 2024

      The Senate Health, Human Services and Senior Citizens Committee reports favorably Senate Bill No. 3319.

      This bill increases the monthly personal needs allowance (PNA), from the current rate of $50, pursuant to the FY 2025 Appropriations Act, to $140 for residents of nursing homes, State and county psychiatric hospitals, and State developmental centers.  This allowance is intended for residents to spend at their discretion on personal items such as telephone expenses, a meal out with friends, cards to send to family, reading materials, or hobbies. 

      The bill also stipulates that beginning January 1 of the following year after the bill’s enactment, the PNA is to be increased annually by the same percentage as the cost-of-living adjustment for Social Security benefits for that year.

      Under Medicaid, an individual’s PNA is income that is disregarded when determining the amount that an individual residing in an institution must contribute to the cost or care.  The State and federal government under the Medicaid program pay the remainder of the cost of care.

      In the case of residents eligible to receive Supplemental Security Income (SSI) public assistance, a federal income supplement program designed to help aged, blind, and disabled people with little to no income, the federal government provides up to $30 a month for an eligible recipient’s PNA.  The State currently supplements the federal allowance by $20 to ensure that SSI recipients residing in nursing facilities, State and county psychiatric hospitals, and State developmental centers receive a total PNA per month equal to that of Medicaid recipients, or $50.  Under the bill, absent any changes in the federal allowance, the State would be responsible for a $110 per month supplemental payment for each SSI recipient.