House File 122HOUSE FILE BY REICHERT Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to the annual adjustment of the personal needs 2 allowance for residents of certain facilities and providing an 3 effective date and for retroactive applicability. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1874HH 82 6 pf/je/5 PAG LIN 1 1 Section 1. Section 249A.30A, Code 2007, is amended to read 1 2 as follows: 1 3 249A.30A MEDICAL ASSISTANCE == PERSONAL NEEDS ALLOWANCE == 1 4 COST OF LIVING ADJUSTMENT. 1 5 1. The personal needs allowance under the medical 1 6 assistance program, which may be retained by a resident of a 1 7 nursing facility, an intermediate care facility for persons 1 8 with mental retardation, or an intermediate care facility for 1 9 persons with mental illness, as defined in section 135C.1, or 1 10 a resident of a psychiatric medical institution for children 1 11 as defined in section 135H.1, shall be fifty dollars per 1 12 month. 1 13 2. Beginning July 1, 2007, the personal needs allowance 1 14 for the residents specified in subsection 1 shall be 1 15 seventy=five dollars per month. 1 16 3. Beginning January 1, 2008, and each subsequent January 1 17 1, the personal needs allowance for the residents specified in 1 18 subsection 1 shall be increased in an amount which is based 1 19 upon the most recent cost of living adjustment announced by 1 20 the United States social security administration for the 1 21 purpose of determining social security benefits. 1 22 Sec. 2. EFFECTIVE AND RETROACTIVE APPLICABILITY DATES. 1 23 This Act, being deemed of immediate importance, takes effect 1 24 upon enactment and the portion of this Act relating to 1 25 providing a personal needs allowance of fifty dollars to 1 26 residents of certain facilities is retroactively applicable to 1 27 July 1, 2006. 1 28 EXPLANATION 1 29 This bill provides that the personal needs allowance under 1 30 the medical assistance program, which may be retained by a 1 31 resident of a nursing facility, an intermediate care facility 1 32 for persons with mental retardation, or an intermediate care 1 33 facility for persons with mental illness, or a resident of a 1 34 psychiatric medical institution for children, is $75 and is to 1 35 be increased annually on January 1, in an amount which is 2 1 based upon the most recent cost of living adjustment announced 2 2 by the federal social security administration for the purpose 2 3 of determining social security benefits. 2 4 The bill takes effect upon enactment and the provision in 2 5 the bill relating to providing a personal needs allowance of 2 6 $50 to residents of certain facilities is retroactively 2 7 applicable to July 1, 2006. 2 8 LSB 1874HH 82 2 9 pf:rj/je/5